SmartStream, a leader in financial Transaction Lifecycle Management (TLM®) solutions, in partnership with Acuiti Management Intelligence, has released the findings of a new survey. The report, titled “The Future of Reference Data: From Compliance to Alpha,” underscores the increasing importance of reference data for financial firms, highlighting advancements in standardization, automation, and innovative applications.
Expanding Use Cases for Reference Data
“Reference data today has applications far beyond the traditional post-trade reconciliation,” states Ross Lancaster, Head of Research at Acuiti. The survey, conducted among participants across the derivatives market—including hedge funds, proprietary trading firms, energy traders, bank and non-bank FCMs, and brokerages—reveals significant strides in reference data management over the past five years.
Key Findings:
- 71% of firms have made investments in reference data over the last five years.
- 46% of respondents identified standardizing external data as a persistent challenge.
- 56% of firms reported significant reductions in manual processes through automation, improving trade workflows and reconciliation efficiency.
- 24% of firms have fully automated their reconciliation systems, though this remains a challenging area.
- AI adoption is on the rise, with 25% of firms already leveraging AI or machine learning for data management and 30% planning integration in the near future.
AI and Automation: Transforming Reference Data
Linda Coffman, EVP of SmartStream RDS, highlights the transformative role of AI:
“Despite progress, challenges like data fragmentation and inconsistencies from external counterparties remain. However, AI is reshaping how reference data is utilized, enabling sophisticated applications across the trade lifecycle. Firms are now shifting from sporadic upgrades to continuous investment in reference data solutions.”
The report emphasizes the growing momentum for AI-driven innovation. Although adoption is still in its early stages, firms are increasingly exploring AI applications to enhance operational efficiency and unlock new opportunities.
Industry Trends
The survey points to a financial industry steadily embracing automation and AI to optimize operations and mitigate risks. Reference data, once a back-office necessity, is now recognized as a strategic asset for generating alpha and streamlining processes.
For a full copy of the whitepaper, visit Acuiti’s report page.
About SmartStream
SmartStream provides cutting-edge financial transaction management solutions that help firms enhance operational control, reduce costs, mitigate risks, and comply with regulatory standards. With over 2,000 clients, including the world’s top 100 banks, SmartStream’s AI-driven solutions deliver efficiency and innovation across the transaction lifecycle, available via cloud or managed services.
