# Doing More with Trade Data: The Value of Deeper Analytical Insights
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-08-01
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Unlocking Greater Cost-Efficiency in Financial Institutions
Meta Description: Discover how streamlined trade data management can improve business performance and decision-making in financial institutions with insights from Mike Bagguley.
URL: https://financedigest.com/doing-more-with-trade-data-the-value-of-deeper-analytical-insightshtml

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By **Mike Bagguley**, Board Advisor, Inforalgo

#### In their pursuit of greater cost-efficiency, financial institutions are turning to new, streamlined ways to manage and report on trade data – with additional benefits. Witha definitive single data set from which everything else flows, market operators gain a clear line of sight into their fuller business performance,which they can use to drive better business decision-making. Mike Bagguley, former COO of Barclays International and now a board advisor to Inforalgo, assesses the potential

![Mike Bagguley](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/mike-450x627-1736839008010-compressed.jpeg)

Mike Bagguley

As regulators continue to demand more proactive surveillance of trading conduct and more detailed and immediate trade reporting, wholesale banking institutions are realising that there may be an opportunity here – to create something that adds value for the business.

Certainly, the traditional piecemeal approach to [trade data](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") treatment is unsustainable. Collating and preparing [data for regulatory compliance purposes has become a costly and full-time job](https://www.financedigest.com/chipmakers-weigh-on-european-shares-focus-on-u-s-jobs-data.html "Chipmakers weigh on European shares; focus on U.S. jobs data"). Similarly, the IT systems on which all of this depends are unwieldy, complex and expensive to maintain. As financial organisations take action to address this spiralling situation, by consolidating their trade data [management](https://www.financedigest.com/early-detection-of-mismatched-trades-is-key-to-managing-risk-and-maximizing-profits-on-the-pl-desk.html "EARLY DETECTION OF MISMATCHED TRADES IS KEY TO MANAGING RISK AND MAXIMIZING PROFITS ON THE P&L DESK") in the cloud and creating high-quality trade records, they will find that they are sitting ona valuable business resource that could be put to use in a number of additional ways.

_Consumer inspiration_

In retail banking and [credit card](https://www.financedigest.com/credit-cards-how-to-choose-a-credit-card.html "Credit Cards: How to choose a credit card") provision, as indeed in many other consumer-facing industries, organisations already routinely combine transaction records with customer data for deeper analysis. It helps them to spot trends in customer activity, and determine where their most profitable business is coming from. Conversely, it can help them spot poorly performing [sectors of the market and accounts](https://www.financedigest.com/demand-from-retail-food-and-beverages-sector-to-account-for-over-70-of-refrigerated-display-cases-sales-study.html "Demand from Retail Food and Beverages Sector to Account for over 70% of Refrigerated Display Cases Sales: Study") which are much less profitable. Armed with these insights, organisations are able to target their promotional activities more precisely, to [win more of the business they really](https://www.financedigest.com/yes-winning-the-euros-really-can-help-your-stock-market.html "Yes, winning the Euros really can help your stock market") want.

They can also provide useful feedback to product development teams, to help inspire more [attractive propositions for customers which the business](https://www.financedigest.com/california-attractions-smart-entrepreneurs-use-to-attract-business.html "California Attractions Smart Entrepreneurs Use to Attract Business") has previously struggled to reach or convert. Such activity also aligns well with organisations’ commitment to better business conduct and improved customer outcomes.

In [investment banking](https://www.financedigest.com/investment-banks-trading-revenue-likely-to-shrink-barclays-boss-says.html "Investment banks’ trading revenue likely to shrink, Barclays boss says"), institutions would benefit greatly from equivalent targeting sophistication, but historically the supporting insights have been lacking.Teams are unlikely to be able to see, at a glance,how the organisation has fared with insurance companies in France, for instance, or whether it might be performing poorly with car [manufacturers in Germany relative to the opportunity](https://www.financedigest.com/manufactured-homes-unique-opportunity-to-aid-the-housing-crisis.html "Manufactured Homes’ Unique Opportunity to Aid the Housing Crisis  ").

This kind of visibility would require a clear line of sight across all of their current and [historic trading and client activity](https://www.financedigest.com/historic-ma-activity-will-peak-in-2022.html "Historic M&A activity will peak in 2022"). Yet the way they have procured IT systems has not been conducive to this. Commonly, financial institutions have tended to put in a new function-specific IT system,or sign up to yet another [specialist](https://www.financedigest.com/the-emerging-growth-of-specialist-finance-in-the-uk.html "The Emerging Growth of Specialist Finance in the UK") third-party service, each time there has been a new business or regulatory requirement, copying across a set of trade data for it to work with. In the process, they have created costly new information silos.

All of this is set to change for the better, however.

_Clarity in the cloud_

Today, cloud-based software services are accepted as being a secure and viable alternative to [managing business](https://www.financedigest.com/intelligent-receivables-management-why-its-a-businesss-greatest-ally.html "Intelligent Receivables Management: Why it’s a business’s greatest ally") applications internally. This means financial institutions can now entertain the possibility of consolidating complete, clean, definitive [trade records](https://www.financedigest.com/euro-zone-posts-record-trade-deficit-in-august-amid-soaring-energy-prices.html "Euro zone posts record trade deficit in August amid soaring energy prices") to a single source, accessible via a single central online hub. One that might serve multiple different use cases.

With a credible, live master data set – the approved, reported version of the trade –  it becomes possible to streamline a whole range of critical business processes, from regulatory reporting to trading and [market surveillance](https://www.financedigest.com/drone-surveillance-market-to-garner-brimming-revenues-by-2018-2026.html "Drone Surveillance Market to Garner Brimming Revenues by 2018-2026"), to detailed business analytics. This paves the way for [Capital Markets](https://www.financedigest.com/jason-colodne-of-colbeck-capitals-april-3-market-rewind.html "Jason Colodne of Colbeck Capital’s April 3 Market Rewind") operators to appreciate and exploit the bigger picture emerging from all of their trade activity, and be smarter about the opportunities they pursue and in the way they target their resources.

_Data consolidation: delivering the bigger picture_

To become better-run businesses, financial institutions need a more detailed [picture](https://www.financedigest.com/trade-finance-the-small-brush-to-paint-the-big-picture.html "Trade Finance: The Small Brush to Paint the Big Picture") across all of their activities. This in turn requires that they are able to integrate trade flows with other data sources, such as revenue and profit performance data, client relationship management records and even client electronic communications ( [important for comprehensive trade surveillance/detecting insider trading or market](https://www.financedigest.com/plaque-disclosing-aids-market-important-changes-in-industry-dynamics-during-2022-2028.html "Plaque Disclosing Aids Market Important Changes in Industry Dynamics during 2022-2028") manipulation).

[Yet this facility has eluded wholesale banking](https://www.financedigest.com/the-power-of-digital-why-theres-still-life-in-the-traditional-retail-banks-yet.html "The power of digital: Why there’s still life in the traditional retail banks yet") until now. Although, increasingly, institutions are using online software tools like Salesforce.com to collate and organise client information, there [needs to be a link between this data and actual trade](https://www.financedigest.com/why-online-retail-trading-needs-an-overhaul.html "Why online retail trading needs an overhaul") records.

Using a cloud-based trade data store maximises the options for integration and onward actions from a single, integrated, credible, current master data source – one that spans all asset classes and has [links back](https://www.financedigest.com/eu-lawmakers-back-ban-on-goods-linked-to-deforestation.html "EU lawmakers back ban on goods linked to deforestation") to fuller client account information, and broader business performance data. Cloud-hosting also makes it easy for all teams to access the insights they want to look at from wherever they are in the organisation, anywhere in the world.

The ideal is that everything, including compliance, risk, [business analysis](https://www.financedigest.com/albumin-market-in-depth-analysis-business-strategies-and-growth-rate.html "Albumin Market In-depth Analysis, Business Strategies, and Growth Rate"), and even end-of-day financial reporting, can all be managed effortlessly using the same clean, certified and up-to-date data.

Taking a centralised, cloud-based approach to IT and data management, meanwhile, means banks can achieve all of this without the continued need for huge, unwieldy and costly IT estates – resulting in savings which could run into millions, annually.

Over time, we are likely to see more [institutions realise the value of consolidating all of their trade data](https://www.financedigest.com/three-layers-of-hybrid-workforce-data-for-financial-institutions.html "Three Layers of Hybrid Workforce Data for financial institutions") management and reporting via a single, optimised cloud-based service, so they can rationalise their out-of-control IT estates, and use their data in new, high-impact ways. Certainly, the [future for trade data](https://www.financedigest.com/the-data-driven-future-of-the-insurance-industry.html "The data-driven future of the insurance industry") management will be simpler, leaner, smarter.


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