Data quality issues 'to blame for financial crises'

17/03/2010

A lack of secure data could have contributed in part to the onset of the financial crisis, it has been claimed.

Tim Buckley Owen, manager of online forum VIP LiveWire, said 'There's no doubt that it was the lack of information provided with the securitised products that largely brought about the crisis in the first place.'

The comments come as a new report by research firm Lepus revealed that more than 75 per cent of top financial services firms are to increase the amount of money they allocate to combating data quality and consistency issues.

However, Mr Buckley Owen questioned what effect increased spending would have, adding: 'You have to wonder, though, whether IT really could have produced any kind of solution … it could 'take a whole weekend' for computers to perform the calculations needed to assess the risks.'

The report, which questioned 100 "top tier" organisations and was published by Thomson Reuters, also revealed that 87 per cent of businesses plan to prioritise improving this area of their operation.

A further 44 per cent said clarity of data would be their "key focus".