One in five independent financial advisers expect to see a significant increase in the number and size of fines imposed on the financial services sector over the next five years because of poor information management and storage.
One in five independent financial advisers expect to see a significant increase in the number and size of fines imposed on the financial services sector over the next five years because of poor information management and storage.
Research from information management company EDM shows that 22% expect a significant increase in fines, 59% a slight increase and only 4% anticipate a fall.
Banking was identified by 49% of the IFAs surveyed as the worst at managing and storing information. This was followed by the mortgage industry (18%), general insurance (14%), and pensions and life assurance (12%).
'Our findings are alarming,' said EDM chief executive Sam Ferguson. 'Competition in the financial services sector is increasing and customers are becoming more demanding. In meeting this challenge, financial services companies have to cope with a huge increase in the volume of information they receive.
'Banks, asset managers and insurers need to become much more efficient in how they manage their information, but our survey suggests that, in trying, many will fail and increasingly break regulatory guidelines.'
The survey of 240 IFAs also found that 28% were 'concerned' or 'very concerned' about the ability of financial services companies to manage and store the information they receive.
As a result, 31% claim they are avoiding recommending certain companies to their clients.
