Over the past decade, the role of meaningful, actionable data has completely changed within the modern Financial Institution (FI). While clean and consistent data was once a luxury that could help you get ahead and improve your practices, today it’s a “must have”, and as Chief Data Officer, your role has been created to ensure that it’s in place.
It’s no secret that different institutions have different motivations for improving data quality, control, and governance. For some, it’s just a regulatory requirement—a box-ticking exercise that they’re legally obliged to complete.
But, for many others, it’s becoming a key competitive differentiator. Forward-thinking institutions recognize that their new Chief Data Officer isn’t just someone that’s going to help them ensure that they’re ticking all the right boxes—they’re also a powerful new strategic force that can lead the company to success.
If you want to make a real difference as CDO and empower your entire organization with the high-quality, highly-available data it needs to get ahead, your first task is achieving excellence in data governance and meeting the strict new principles outlined in BCBS 239.
Creating the kind of controlled environment laid out in these new principles is no simple task, but we’ve identified 3 key steps that can help you adapt and start changing the way you manage enterprise data today.
1. Standardize how data is stored, accessed and reconciled
When data is siloed, incompatible with key systems, or difficult for your people to access, it very quickly loses its value—and can seriously slow down managerial and regulatory reporting.
Standardizing your data requires a careful blend of technology and processes to ensure all data is extracted, transformed, and stored in a way that keeps it timely, relevant and accurate.
More often than not, it’s an FI’s technology that lets them down. Not all data platforms are created equal, and many solutions are unable to apply governance rules consistently, or early enough in the capture process.
Today’s FIs need a solution that can provide them with a unified staging area where all data can be treated, consolidated, and standardized as soon as its captured—ensuring consistent data quality across the enterprise.
2. Establish a single source of truth for all enterprise data
Once data is captured, you also want to make sure it is highly visible, and available to any person, group, or application that may want to use it. If you want to unify all of your data, you have two main options:
The former is in place in many enterprises already, and while it seems like the simpler way to “bolt on” data transparency, it can introduce further complexities in the long run. Acquiring all the necessary integrations can be costly, complex, and in some cases can even create break points that bring your data unification efforts to a screeching halt.
Though it may cost more upfront, a platform designed with data unification in mind can help simplify data management, enable use of additional analytics, and further simplify compliance with regulations such as Basel III and the BCBS 239 principles.
3. Create a cultural change around data quality
For data and analytics technologies to truly shine, the right processes need to be in place across the organization to route data to the right systems and people in the right way. But dedicated data teams can’t do all the heavy lifting alone.
Data comes from all LOBs in the modern FI, and HR, Finance, Sales, Management and IT all have a responsibility to uphold data quality. Getting all these people on board requires a complete cultural shift for some FIs.
Achieving this cultural change requires rigorous processes to be applied throughout the organization, combined with the relevant education to ensure that they are followed correctly. By changing behaviors in all LOBs, you can make sure data capture and processing remains consistent across the enterprise—simplifying your regulatory reporting operations.
Great infrastructures power great data governance
Following these steps can help you drive your FI towards data excellence, but to get there, you need a data platform that offers all of the high-quality data, and all of the right management, analysis, and reporting tools you need to succeed, in one place.
Oracle is already delivering solutions that can help standardize data capture and distribution, establish a single source of truth for all data, and help you go above and beyond what’s expected of the CDO and drive real strategic change across your enterprise.
Discover how Oracle Financial Services Analytical Applications can help your FI take control of your data environment once and for all.