QMV claimed the $2 billion cost of the Hayne royal commission could have been avoided if data protocols had been better maintained.
QMV chief executive Mark Vaughan said many organizations were now paying the price for not having adequate systems in place.
“Unfortunately, many organizations will now pay the price for failing to implement adequate data management tools and processes. With the right tools and systems, the costs of inaccurate data can be reduced to thousands rather than billions,” he said.
Mr Vaughan said it was clear the evidence used in making the decision was not as strong as it should have been.
“While the focus of the royal commission is on conduct, the valuable role that technology and data can play in ensuring good outcomes for clients and members has been overshadowed. »
All financial institutions, not just the big four, need to be at the forefront of the data they hold, Vaughan said.
“Whatever the final figures, there is no doubt that data errors are costly for institutions in many ways – from repair costs to compensation payments, not to mention reputational damage – and the longer a data quality error goes undetected, the greater the final consequence. harm the financial results of institutions and their members,” he said.
For this to happen, Mr Vaughan said businesses needed to change their attitude towards data quality.
“Across the industry, there is an attitude that it is ‘acceptable’ to wait until a problem arises and then resolve it, rather than taking a proactive and preventative approach. After the royal commission, there is a lot of scrutiny, a lot of ground to make up and a lot of issues,” he said.
Mr Vaughan said organizations that bury their heads in the sand will stay in the same remediation cycle, while those that escape will not.
“The true measure of how you value your customers lies in tangible, visible, measurable action; not just a slogan promoted during an advertising blitz. Industry players who understand this will rebuild consumer confidence by demonstrating both the investments and benefits of customer-centric systems and processes,” he said.
