New research from Patni highlights significant gaps in quality of reference data used by banks and asset managers

Published 4th February 2010


An average of 6% of all trades fail as a result of poor reference data, study reports

Patni Computer Systems (BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI), a leading global IT and BPO services provider, announced today the findings of a research study1 with 100 UK based asset managers and banks. The study found that over a third (35%) of respondents were not confident in the quality of reference data used by their company to support trading activity.

Reference data is the static information used in the administration of a securities transaction. It is typically sourced from a range of internal and external providers and fed into data silos scattered around the organisation. Inconsistent data accounts for 60% of failed trades, according to industry analysts TowerGroup.

Patni’s research found that an overwhelming 91% of asset managers did not have a single supplier of reference data, with the remainder admitting that they were not sure of the source of their data. They reported that an average of 6% of trades have failed as a result of poor reference data.
Yet when considering solutions to the problem of managing consistent reference data, half (50%) of respondents said that they had not considered outsourcing this process to a third party. Their main reason for not outsourcing this process was potential loss of control, followed closely by a fear of security breaches. The overwhelming reason for considering outsourcing was the potential for cost savings, followed by higher levels of accuracy.

Philip Filleul, product manager for reference data solutions at Patni, said: “The twin pressures of achieving regulatory compliance and straight-through processing (STP) have highlighted substantial redundancy and duplication of effort in the area of reference data management. One in 10 trades fail on first settlement attempt – and of these, 60% - 70% can be attributed to poor data management.

“Many buy-side and sell-side firms are now uncomfortably aware of both the time and costs they devote to purchasing, cleansing and distributing reference data, as well as the risks that arise when these tasks are not performed effectively, among them failed trades and lost revenue opportunities. Many are now willing to consider the concept of outsourcing all or part of this function to a trusted third party that can reduce costs and risks.”

Patni’s global financial services team has 25 years’ experience in providing solutions to the financial services industry and has proven expertise in delivering reference data in excess of 99% clean status. It manages back office accounting for 450 portfolio funds, equating to $325 billion assets under management. To download a copy of Patni’s white paper ‘Managing reference data risk: a best practice approach’ please visit www.patni.com


-Ends-

1 Patni surveyed 100 representatives of UK-based banks and asset managers at its recent seminar ‘Reference data management – buy once, cleanse and distribute everywhere (vs the real world)’ held in association with Lepus.

About Patni
Patni Computer Systems Limited (BSE: PATNI COMPUT, NSE: PATNI, NYSE: PTI) is a global provider of IT Services and business solutions, servicing Global 2000 clients. Patni services its clients through its industry-focused practices, including banking and financial services (BFS); Insurance and Healthcare; manufacturing, retail and distribution (MRD); life sciences; communications, media and utilities (CMU), and its technology-focused practices. 

With an employee strength of over 14,500; multiple global delivery centres spread across 12 cities worldwide; 27 international offices across the Americas, Europe and Asia-Pacific; Patni has registered revenues of US$ 719 million for the year 2008.

Patni’s service offerings include application development and maintenance, enterprise application solutions, business and technology consulting, product engineering services, infrastructure management services, customer interaction services & business process outsourcing, quality assurance and engineering services.

Committed to quality, Patni adds value to its clients’ businesses through well-established and structured methodologies, tools and techniques. Patni is an ISO 9001: 2000 certified and SEI-CMMI Level 5 (V 1.2) organisation, assessed enterprise wide at P-CMM Level 3. In keeping with its focus on continuous process improvements, Patni adopts Six Sigma practices as an integral part of its quality and process frameworks.

Patni leverages its vast experience spanning three decades; deep domain expertise; full-spectrum services; and suites of IP-led solutions, methodologies and frameworks; in being an effective business transformation partner to its clients.


# # #

Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements.  The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, liability for damages on our service contracts, the success of the companies in which Patni has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorised use of our intellectual property and general economic conditions affecting our industry. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.