IT departments are unable to meet requests from the business for financial information due to lack of access to the information, according to a new research by Oracle.
The study conducted by Vanson Bourne, researched the views and opinions of 222 IT professionals and 228 financial services professionals across Europe.
The research revealed that almost a quarter (24%) have experienced lost revenues due to issues with IT systems and more than a third (37%) experienced issues with IT systems that made it difficult to evaluate investment risk.
The report said that more than a third (38%) are asked for market risk information on a daily basis indicating it is critical in making business decisions, and yet only 17% of those that reported a demand for the information believe it is 100% accurate.
The average amount of time taken for implementing system improvements is 14 days, with Switzerland on average only taking six days and Benelux requiring the most time, taking 30 days on average.
Financial institutions are experiencing problems with legacy systems due to the complexity of integration and the need for future proofing.
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Of those quizzed, four in five said that legacy systems are a barrier to system improvements.
Half (50%) of those questioned have reported to have to go to many different sources/departments to get the data needed for corporate or compliance reporting
The research showed that only 15% are completely confident that their existing IT system can provide a comprehensive picture of the company’s current position.
Oracle Financial Services Global Business Unit vice president of marketing Senthil Kumar said banks really need to consider if their IT systems are able to not only meet existing regulations but also if they are flexible enough to comply with new ones, like Basel III.
"In the current financial climate, the rate of newly introduced regulations is only likely to increase and financial institutions need to be prepared for it," Kumar said.
"The time taken to make improvements to systems only hinders this, as well as, increasing the gap between IT and the business, something that needs to be reduced if banks are going to remain on top of the compliance requirement."
