Strengthening Data Management in Banking and Finance Sector
Updated On : March 2022
Data is the backbone of any financial institution!
The new generation of FinTechs, InsurTechs and RegTechs build upon data. The financial institutions can leverage the data, which can be collected from day to day across channels, products, and services. This data can be used in different ways, i.e. to drive better performance, enhance the customer experience, effective data management.
Challenges in data management faced by banks and financial institutions:
- Age-old issue – Legacy Systems.
- As a huge amount of data is generated in various formats, all the time, it is difficult to achieve a single view of the customer from numerous and different sources.
- Handling huge amounts of data.
- Rising regulatory requirements like how to store data securely, etc. by regulatory bodies.
- To ensure the data is accurate, of high quality and can retrieve the related information quickly to meet the required timelines.
Areas where Data Management needs to be strengthened:
- Regulatory imperatives
Strong data management is one of the main requirements for any financial institution to meet the regulatory imperatives concerning privacy, security, and trust.
The regulators are majorly focusing on the issues of secured data storage and management enshrined in legislation such as Consumer Data Rights (CDR) or GDPR.
- Lending Transformation
The lenders, regulators, and government have been looking for financial organizations to make available financial support easily available to customers and institutes.
Across unsecured and secured lending, this means being able to quickly access high fidelity, high integrity data to make the necessary credit decisions and authorizations.
Automating the manual lending process, which requires fast access to reliable data which can be achieved by effective data management.
- Customer Experience and Personalization
Data management plays a vital role in delivering an enhanced customer experience to the organizations in the digital age.
Banks and financial institutions are investing in developing digital channels to help customers manage their financial activities easy, simple with the help of data management.
With the help of data management, understanding customer needs and wants, banks and financial institutions can give personalized services like shopping, retails, utilities, or payment services to their customers.
The data has become an asset for the finance industry, it has become the driver and facilitator of new business models and innovation. Data management with the help of emerging technologies is integral to an effective data strategy and is becoming an increasingly critical determinant of success.
Nelito’s FinCraftTM Data Archival and Retrieval solution (FinDART) is a cutting-edge archival and reporting solution for banks and financial institutions. The solution is proven for effective data management, to deliver quick ROI to banks, improve customer service and reduce dependence on legacy IT systems. To know more write to us at firstname.lastname@example.org