Transforming Data into Opportunities: Metric of Month – Average Days to Close a Challenge

Transforming Data into Opportunities: Metric of Month - Average Days to Close a Challenge

High-quality data is more than a benchmark - it is a strategic necessity. Investing in data quality can transform risks into opportunities and inefficiencies into advantages. In this new series, Zornitsa Manolova, Head of Data Quality Management and Data Science at GLEIF, explores key metrics in the Global LEI System - with this month's blog focusing on the 'Average Days to Close a Challenge'.

Relying on outdated information is a risk no one can afford in a fast-moving business world. The GLEIF Challenge LEI Data service empowers users to protect the integrity of LEI data by flagging inaccuracies when they spot them. But for this to work effectively, it is critical that the time taken to resolve challenges - Average Days to Close a Challenge - is kept low. This is key to ensuring LEI records remain accurate and reflective of real-world entities, keeping global markets running on trusted data.

In an increasingly interconnected global economy, the ability for organizations to trust and use data effectively is the foundation for innovation, growth, and competitiveness.

A high-quality data ecosystem is a driver of change and innovation that enables organizations to identify and seize new opportunities, while low data quality can lead to inefficiencies and exposure to regulatory and reputational risks.

GLEIF is committed to optimizing the quality, reliability and usability of LEI data. Since 2017, it has published dedicated monthly reports to transparently demonstrate the overall level of data quality achieved in the Global LEI System.

To aid broader industry understanding and awareness of GLEIF's data quality initiatives, this new blog series explores key metrics included within the reports.

This month's blog examines the Average Days to Close a Challenge

The vital importance of data accuracy today

In a constantly evolving global business landscape, the accuracy and reliability of foundational data - like Legal Entity Identifiers (LEIs) - are vital for sound decision-making, regulatory compliance, and financial stability. As companies change, leadership shifts and corporate structures transform, outdated or incorrect LEI data can introduce significant risks, including misidentifications, compliance failures, and operational inefficiencies.

That's why, in addition to the annual renewal protocol already in place, GLEIF introduced the Challenge LEI Data service - a mechanism designed to reinforce the accuracy of the Global LEI System. This approach creates a powerful second layer of quality assurance, complementing GLEIF's robust data quality program.

Understanding the benefits of the Challenge LEI Data

Importantly, any user of LEI data can challenge the accuracy or completeness of an LEI record at any time. This capability helps maintain high confidence in the Global LEI System, safeguarding businesses, regulators, and financial institutions against operational and regulatory risks. By harnessing the power of the crowd, GLEIF ensures that LEI data remains up-to-date, reliable, and reflective of the real-world entities it represents - delivering broader benefits across the ecosystem:

• Accuracy - Ensures that LEI reference data remains accurate and reliable for all stakeholders.
• Reliability - Contributes to an open and verifiable LEI system that supports global financial stability.
• Stewardship - Allows businesses, financial institutions, and regulators to play an active role in maintaining data accuracy.
• Risk Reduction - Minimizes the potential for errors that could lead to regulatory and operational challenges.

How the Challenge Process works

• Identify the Issue - Users can review LEI records via the LEI Search function, GLEIF API, or any other data available for download on the GLEIF website and detect discrepancies such as incorrect names, outdated registration/relationship details, or duplicate entries.
• Submit a Challenge - Through the challenge facility on the GLEIF website, users can report known or suspected inaccuracies by providing relevant details and evidence.
• Verify - The reported challenge is automatically forwarded to the LEI issuer managing the record. The issuer then verifies the claim and makes necessary corrections within approximately ten business days.
• Update entity information - Once validated, the LEI record is updated, ensuring that users access the most accurate and up-to-date entity information.

Why keeping the 'Average Days to Close a Challenge Low' matters

Once a challenge is submitted, a swift, responsive approach from LEI issuers is key to protecting the system's integrity and enabling all stakeholders to operate confidently. The 'Average Days to Close a Challenge' metric demonstrates this responsiveness. Keeping the average as low as possible ensures LEI records are updated in a timely manner and reduces the window where users could be relying on incorrect data. This minimizes regulatory and operational risks caused by outdated information, strengthening confidence in the LEI system as a reliable, up-to-date global reference.

As part of a drive to further lower the Average Days to Close a Challenge, LEI issuers achieved an average processing time of just five days in March 2025. This reflects a more streamlined and responsive approach to managing challenge resolutions.

Transforming data into opportunities

Given the essential role the LEI plays in promoting transparency and accuracy for global financial transactions, risk management, and regulatory reporting, GLEIF is committed to continued collaboration with LEI issuers to ensure challenges are resolved as quickly as possible. By proactively identifying and swiftly remediating potential inaccuracies, the integrity of the Global LEI System is enhanced - supporting well-informed decision-making that strengthens trust and reliability across the financial sector and beyond.