Market data subscriptions, including Bloomberg Terminal subscriptions, are expensive. As a few thousand subscriptions result in annual costs measured in the tens of millions, even a market data cost reduction of a few percent can have a significant impact.
From our experience, savings of a few percent are at the lower end of expectations. Once you identify licenses that are not being used, duplicated, or underutilized, the savings you can make ramp up. And you can then factor in additional savings that can be made by switching some users to lower-cost market data alternatives.
It all sounds great, i.e., there are savings to be made, and that money is much better staying within your organization than being hemorrhaged to market data vendors.
Finding the savings, however, is incredibly complex. That’s where you need a solution like the software we provide at WatchPoint Finance.
The WatchPoint Finance Difference
There are other companies that also offer market data cost reduction solutions. Not as good as ours, of course, but there are alternatives.
One of the key differences between our offering and the way our competitors operate is our extensive experience in the financial sector. We are an automation and AI software development company that has deep roots in the financial services industry. We work with global financial services companies, and we have a comprehensive understanding of the technical challenges, employee nuances, and compliance issues that are commonplace.
Another main difference between the WatchPoint Finance market data cost reduction solution and others in the market is our pricing model. We operate on a Pay-Per-Saving (PPS) basis.
How Does a Pay-Per-Saving Market Data Cost Reduction Solution Work?
It couldn’t be simpler, really. Let’s start with what we don’t charge for.
We don’t charge setup fees, per-analysis consultancy fees, or fees for producing a report outlining where you can make market data cost savings.
We only charge you when we save you money. All the above things are part of what we do, but you only incur costs from us when we actually reduce the amount of money you are currently spending on market data subscriptions. It works on a percentage basis, i.e., we charge a small percentage of the amount we have saved you.
It’s not even completely accurate to describe it as a cost, as right now, today, you are spending the money anyway. We help you stop any unnecessary market data spending and charge a small percentage of the savings for the service.
The Benefits of Market Data Cost Reduction
If you would like to learn more about the technical elements of our market data cost reduction solution, get in touch, and we’ll arrange a demo.
For the remainder of this blog, we are going to focus on the benefits:
- Save money – how much you will save depends on the number of subscriptions you have, how many of those subscriptions are for the highest priced products, and the extent of subscription sprawl. That said, savings of up to 20 percent can be achievable.
- Savings realised annually – the savings we help you make today are repeated every year.
- Mitigated compliance risks – charging a client for market data subscriptions that are not being used can result in compliance challenges. We can help you ensure that what you are charging clients accurately reflects the market data subscriptions that are being used.
- Maintained data quality and integrity – our goal is to identify right-fit market data solutions for your situation. This saves you money with no loss of data quality or integrity.
- License allocations based on usage – there is often little objective reasoning or oversight when it comes to market data license subscriptions. We help you move to an allocation approach based on real-world usage data.
- Enhanced visibility and control – managing market data licenses will become easier with enhanced visibility and control.
The Cost Saving Double
The conclusion that we would like to focus on in this blog is a cost-saving double.
You shouldn’t be paying more than what you need to for market data, especially when there is minimal understanding of how, where, and why the money is being spent.
At the same time, you shouldn’t pay anything for market data analysis unless that analysis produces real-world savings.
The WatchPoint PPS market data cost reduction solution is the best way forward.
