Data becomes the new strategic asset for financial institutions
André Casterman, Chief Marketing Officer, INTIX
Data is rapidly becoming the lifeblood of the global economy. It represents a new type of economic asset. As the nature of innovation is changing, data becomes a decisive factor in the success or failure not only of businesses, but also of the economies that underpin them.
The financial services industry faces an unprecedented acceleration of digitisation and regulations leading to major data management impacts:
- The increased digitisation produces new electronic information, digital processes, data semantics and structures as well as new IT systems within FI’s – in payments space, the roll-out of new payment instruments have impacted banks since almost a decade
- Further to multiple financial services innovations, the number of internal transactional systems has increased within banks and this makes enterprise-level reporting and decision-making harder than ever before
- The extended digital environment leads to higher complexity for staff to find and interpret information given the growing number of data sources thereby impairing customer service
- The growing information silo’s raise non-compliance risks.
This situation contrasts with the growing importance of data, transaction data in particular, which is increasingly seen as the lifeblood of the business. Regulatory authorities identified this too and now require information management to be a foundational effort within all FI’s for purposes of risk management and compliance reporting. This has led FI’s to recognise the need to become far more information-centric.
Assessing the data management challenge
Given the continuous evolution of their IT infrastructure and adoption of new digital processes, FI’s deal with a myriad of systems and applications, all having their own software technology, access method, security, user interfaces, data semantics and structures, messaging formats etc.
FI’s must assess and tackle those data challenges strategically:
- First and foremost, they must elevate data to its deserved status of strategic asset. This will help ensure that data is actively managed on enterprise level for its embedded value to be realised
- They also need to equip themselves with the right technology in order to keep up with the growing data volume and turn it to their advantage.
However, some barriers exist:
- Integration with legacy systems: many legacy systems make it difficult to extract data and may not be best suited for Big Data technologies
- Connecting data silos: there is no uniform view of data and most organisations have not integrated disparate data sources given the complexity of the task.
Data integration tools are becoming key to connecting various data sources and data sets, and to delivering on the promises of data management. This is how INTIX helps its clients.
INTIX data technologies increase data accessibility and intelligibility
By adopting INTIX, FI’s are able to draw a competitive advantage through compliance readiness and responsiveness; enhanced strategic decision-making; faster customer service; effective audit and risk management. In sum, FI’s that become master of their own data benefit from a competitive advantage which they can turn into business profit.
INTIX helps financial institutions become information centric organisations and help them transform data into a strategic asset. With INTIX, data becomes comprehensible or intelligible.