With plans to build a single customer view due to have been submitted to the Financial Services Compensation Scheme by 31st July, 41 per cent of UK deposit takers remain unaware of this regulatory obligation. A further 28 per cent of organisations could not identify who owned the SCV in their company.
The research was commissioned by DataFlux and carried out by JWG. It found that half of respondents only initiated their SCV plans during 2010, even though projects have to be completed by the end of the calendar year. Three quarters (74 per cent) expect failure to meet the deadline to lead to greater scrutiny by the regulator, while 65 per cent predict multi-million pound fines.
Colin Rickard, managing director EMEA, DataFlux, commented: “This report highlights a shortfall in spending required to create SCVs in order to meet the FSCS requirement for January 2011. This will have to be corrected in the second half of 2010 or firms risk facing significant fines and further reputational damage during 2011. It is clear that data quality and data integration are key compliance challenges. We are working with leading financial services firms to create and validate SCVs across the industry.”
One obstacle may be the lack of a business case for building SCVs, other than for compliance. Only 14 per cent of respondents saw a SCV project as a strategic opportunity to deliver additional benefits. Data-related issues were also identified as the most challenging to overcome, with poor quality legacy data and data quality management seen as difficult.