Summary
S&P Global Inc (SPGI, Financial) has released its annual Global Regulatory Reporting Survey on December 3, 2024, through its Market Intelligence division. The survey underscores the significant operational burdens and the reliance on manual processes that hinder data quality and efficiency in regulatory reporting. Conducted by Cappitech, a part of S&P Global Market Intelligence, the survey reveals industry trends and challenges, emphasizing the need for improved operational processes and data accuracy.
Positive Aspects
- Increased awareness of the importance of regulatory reporting, with 70% of firms feeling well-prepared for regulatory changes.
- Growing adoption of third-party solutions, with two-thirds of respondents using or planning to use these technologies.
- Recognition of the value of leveraging sophisticated technologies and AI for better data management.
Negative Aspects
- 40% of respondents still rely on manual processes, leading to increased resource and time consumption.
- Significant time spent on resolving data quality issues, with nearly 40% of firms dedicating over ten hours weekly.
- On-premise solutions are losing popularity, indicating a shift but also a challenge for firms with existing infrastructure.
Financial Analyst Perspective
From a financial analyst's viewpoint, the survey highlights a critical area of concern for firms involved in regulatory reporting. The reliance on manual processes not only increases operational costs but also poses risks to data accuracy, which can have financial implications. The shift towards third-party solutions and AI technologies suggests a potential for cost optimization and improved compliance, which could enhance the financial health of these organizations in the long term.
Market Research Analyst Perspective
As a market research analyst, the findings of the survey indicate a transformative phase in the regulatory reporting landscape. The increased adoption of technology solutions reflects a market trend towards digital transformation. This shift is likely to drive innovation and efficiency, offering competitive advantages to early adopters. However, the transition from traditional methods to advanced technologies will require strategic planning and investment.
FAQ
What is the main concern highlighted in the survey?
The main concern is the significant operational burdens and reliance on manual processes that affect data quality and efficiency.
How many firms are using or planning to use third-party solutions?
Two-thirds of the respondents are using or planning to use third-party solutions.
What percentage of firms feel well-prepared for regulatory changes?
70% of firms reported feeling well-prepared for this year's regulatory changes.
How much time are firms spending on data quality issues?
Almost 40% of firms are spending ten hours per week or more on remediating data quality issues.
Read the original press release here.
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