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Are you also facing steadily rising market data costs?
Rising market data costs are putting financial institutions under pressure. Discover three key lessons to manage data strategically, cut costs, and boost long-term independence and competitiveness.
Christoph Buck
3 Lessons Learned from the $42 Billion Market
Global spending on financial market data rose to USD 42 billion in 2023. Recent studies show that this trend is even accelerating. In 2024, global spending on market data increased by 8.1%, while major market data providers raised their prices by an average of 15% during license renewals!
At the same time, the market data budget only grew by around 2% in 2024—significantly more slowly. Swiss financial institutions are also feeling this cost pressure. But how can business-critical market data be managed efficiently and strategically? Three key lessons show how banks can benefit:
Lesson 1: Transparency creates savings potential in the millions
It is crucial for financial institutions to have a clear overview of which data is used where and how intensively. This is the first step in avoiding inefficient cost structures and unnecessarily expensive contracts. Through systematic inventorying and regular usage monitoring (e.g., via central APIs or data lakes), substantial savings can be identified quickly.
Lesson 2: Centralized license management reduces risks and costs
License agreements for market data from providers like Bloomberg or Refinitiv are complex and often contain hidden risks. Those who rely on centralized license management protect themselves against audit risks and gain negotiating leverage. Successful institutions manage contracts actively, prepare for audits internally, and define clear responsibilities.
It’s also important to recognize that the often top-down call for “tougher negotiations” with data vendors is no longer sufficient on its own. Instead, the market data competence center must be equipped both in terms of personnel and technology to continuously assess needs, consolidate requests, and manage procurement. The goal should be to act independently of vendors in the long term.
Lesson 3: Alternative data sources can create independence
In addition to traditional providers, alternative data sources (including some open-source solutions) are increasingly emerging. These can replace or at least supplement costly commercial sources with innovative and flexible usage models.
Companies that adopt such a hybrid approach early and actively monitor it may not only benefit financially, but also strengthen their long-term independence and strategic competitiveness.
Conclusion: Manage market data strategically
The three lessons learned presented here offer a solid starting point to purposefully improve your market data strategy. However, our experience shows that additional key areas of action are essential for achieving sustainable success.
The market data framework from MMG Management Consulting offers comprehensive guidance and concrete implementation steps. We’re happy to support you in managing your market data efficiently—turning a cost factor into a long-term strategic advantage.
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