Greetings from North Head, Beijing.
North Head has produced a report on Data Management Trends in Financial Services in China. The report was issued on 6 June 2019.
Data is the foundation of the emerging technologies that are transforming business operations and economies as part of the “fourth industrial revolution”. In use of data, China’s financial sector is developing rapidly and catching up with international standards. Effective data strategies and their implementation will be key attributes for future success for enterprises in the sector.
In Q4 2018 and Q1 2019, North Head conducted a study of data management (DM) in China’s financial services sector to ascertain the motivations and drivers for DM and how companies’ internal structures and processes are evolving to accommodate it. Given previous studies in the US and Europe, this study was designed to highlight DM differences and similarities in China, with respect to security and compliance, governance, and DM as a basis for the development of new products and services.
The report will be useful to those senior executives responsible for strategy, business development, and particularly for those responsible for data management. It highlights where focus is required within financial companies to have the preconditions for exploiting adequately these emerging technologies and to advance more competitive market positions.
- The 2007-2008 financial crisis impacted the US and EU, resulting in rigorous regulatory compliance requirements, including those covering DM. China largely escaped the global financial crisis, resulting in DM that has been less driven by compliance and governance and more motivated by revenue generation.
- Since 2017, China’s financial regulators have begun tightening supervision of data and information management, driven in part by data sovereignty, localization, and cybersecurity requirements, as well as efforts to manage risk.
- Data quality, coverage, and trust are key challenges in China.
- Most companies have not fully realized the need for systematic enterprise-level DM and governance. The management of data is shared by a wide range of departments.
- Compared to the US and Europe, it is rare to find a position in China solely dedicated to DM.
- Data managers’ common goals include applying data as a core corporate strategy and generating financial growth with new revenue-generating business opportunities.
If you wish further information or analysis MD of North Head, John Russell is open to have a discussion on the content of the report. Please let us know whether you or any of your colleagues would be interested in featuring the report or to use content from the report and in what format.