Rising data costs are expected across financial institutions
94% of financial institutions in the UK and US anticipate larger data budgets next year. That’s nearly every firm out there, and it’s no surprise. Businesses demand more information, faster and in greater volumes, in order to remain competitive. But here’s the issue: Are these budget hikes a smart move forward or a signal that firms are losing control?
If your company is simply throwing money at data without a clear strategy, you’re leaking resources. More data should drive innovation and competitive advantage, not financial chaos. The challenge lies in distinguishing a strategic budget increase from spiraling costs that aren’t being monitored effectively.
Limited real-time monitoring contributes to cost management challenges
Only 20% of firms track data costs in real time. That means just one out of five companies truly knows where their money is going at any given moment. Another 42% monitor costs monthly. Like this, by the time you spot the issue, you’ve already wasted resources.
Data consumption and costs can shift dramatically in days or even hours. Without real-time tracking, businesses are constantly playing catch-up, reacting to numbers instead of controlling them. This hinders financial performance, slows decision-making, and leaves executives scrambling to explain why budgets are out of control.
Real-time insights are the difference between leading with confidence and lagging behind.
Unexpected costs result from unclear pricing models
34% of firms reported unexpected costs due to murky pricing structures and unpredictable usage patterns. This is because many data vendors bury fees in complex contracts or fail to outline how small spikes in usage translate into massive bills.
Imagine signing up for a service where costs “seem reasonable,” only to get hit with surprise charges month after month. That’s exactly what’s happening to a third of institutions. The impact? Stretched budgets, frustrated leadership teams, and wasted time trying to track down the cause of these spikes.
If pricing models aren’t clear or predictable, you have a cost problem and a transparency problem. Companies need full visibility into their data usage and the fees tied to it. Otherwise, every month becomes a guessing game of whether the bill will land as expected or as a surprise.
Reliance on manual tracking methods causes delays and inefficiencies
44% of firms are still tracking data costs manually. That’s nearly half the industry relying on spreadsheets, paperwork, and reconciliation processes that belong in a previous century. It’s inefficient. It’s error-prone. And it creates delays that no company can afford.
Manual methods mean finance and operations teams are constantly playing catch-up. Tracking costs from multiple sources? Reconciling endless vendor invoices? By the time the numbers are in, they’re already outdated. Automation is the obvious solution. Companies using manual processes can’t scale, adapt, or respond quickly enough to data needs.
Avoiding modern data management solutions leads to higher long-term costs
Some firms think they’re saving money by sticking with legacy systems. The reality? They’re not. Outdated systems may seem economical at first but result in much higher expenses over time.
Hidden costs creep in slowly, manual labor, reporting errors, delayed decisions, and surprise expenses.What starts as an “affordable” system eventually becomes a financial black hole.
The truth is, the upfront investment in modern solutions pays off exponentially over time. Old systems cost more because they slow you down, prevent innovation, and force teams to work harder just to keep up. There’s nothing economical about that.
Modernizing data management systems brings many benefits
Modern data management systems make you money. According to Gresham, firms that migrated from legacy systems have reported over 60% savings.
Operational teams are seeing productivity skyrocket. When businesses automate processes, eliminate delays, and gain real-time visibility, they unlock untapped value. The result is faster decisions, greater flexibility, and a more competitive position in the market.
Investing in a comprehensive, scalable system means future-proofing your business. When you get it right, data costs become predictable, innovation accelerates, and operational efficiency becomes a given.
Modernizing your systems now puts you in control of costs and positions your company to lead in the years ahead.
