94% of financial institutions in UK and US expect increased data budgets

More than nine out of ten (94%) of  decision-makers at financial institutions anticipate an increase in their overall data budgets over the next budget year, according to new research commissioned by Gresham, a leading provider of data integrity and control solutions. However, this surge raises critical questions: how much of this increase is a strategic investment, and how much reflects a loss of control over escalating costs?

The study, which surveyed 200 senior data decision-makers working in financial services across the UK and US, reveals that while rising data volumes and the demand for real-time accessibility are driving budget increases, many firms are struggling to effectively monitor and manage these growing expenses. Only 21% of firms track data consumption, allocation, and costs in real time, with 42% doing so on a monthly basis. This lack of timely cost monitoring limits their ability to control expenses effectively and impacts their bottom line.

“While it’s encouraging that almost all financial institutions are investing more in data management, there’s a crucial concern about how these funds are being utilised,”

Furthermore, 34% of respondents highlight hidden cost surprises related to data management as one of their most serious business issues. Opaque pricing models and unpredictable data consumption make it challenging to forecast data spend accurately, leading to unexpected billing increases and strained budgets.

The survey also finds that reliance on manual tracking methods persists, with 44% of firms continuing to use a manual process to track costs from different sources and reconcile against vendor invoices. This outdated approach results in delayed reporting and difficulties in managing real-time consumption.

Poorly managed data ecosystems not only impede operational flexibility but also lead to escalating costs. Frequent requests for data and reporting adjustments significantly strain budgets. As data volumes increase, so do the associated expenses but are these rising costs being effectively controlled?

“While it’s encouraging that almost all financial institutions are investing more in data management, there’s a crucial concern about how these funds are being utilised,” said Neil Vernon, CTO, Gresham. “Is this increased spend a strategic investment to drive innovation, or are firms simply losing control over their costs due to hidden expenses and inefficiencies?”

“Many organisations believe they’re saving money by avoiding upfront investments in modern data management solutions,” he added. “In reality, they incur greater expenses over time due to hidden costs and outdated practices. The lack of real-time cost monitoring and reliance on manual processes hinder their ability to manage expenses effectively and adapt to today’s fast-paced data environment.”

Gresham’s research highlights the urgent need for financial institutions to modernise their data management approaches. Streamlining data infrastructure isn’t just about cutting costs. it’s essential for boosting operational flexibility and maintaining a competitive edge in the financial services sector.

“In our experience, clients migrating from legacy systems have achieved savings of over 60%,” added Vernon. “Operational teams have seen increased productivity improvements, demonstrating the transformative potential of modernising data management practices. Investing in robust, scalable data solutions now will lead to significant cost savings and operational benefits in the long run.”

About Gresham:
Gresham is a global leader in enterprise data automation solutions for the financial services industry. Leveraging innovative modern technology and deep industry expertise we make the complex simple, enabling firms to streamline their processes, manage risk, reduce costs, and ensure compliance. As a trusted partner to the world’s leading financial institutions, our cloud and managed services for enterprise data management, data automation, reconciliation and control, and regulatory reporting ensure that business leaders can have complete confidence their data and day-to-day operations.

For more information, please visit www.greshamtech.com