Banks have always possessed important data that could act as fuel for analytics efforts, but recent developments have improved the range of insights available. Computerworld contributor Susan Feinberg stated that, despite the attention paid to big and unstructured data sources, banks' best bet involves applying complex analytics processes to existing reserves of information.Need for governance
Feinberg explained that, faced with new processes able to draw powerful insights from information, companies have an intense need for data quality
software and other governance programs to keep the information usable and compliant with industry regulations. She singled out three types of data especially worthy of these expanded efforts.
Transactional data has always been the lifeblood of the banking system. Feinberg stated that the information is important even in small quantities, and cited financial problems brought on by software changes as evidence that banks must keep such figures consistent at all times.
The other information areas Feinberg cited are both types of reporting data. The first is the information shared with customers. She explained that data management and governance for customer data is vital, as customers trust banks to always provide accurate figures about their investments. This is especially true of business customers. The other kind of reporting data is the set of figures sent to government regulators. Feinberg stated that these figures must be completely accurate and come from silos throughout an organization to be satisfactory.
Big data has become a popular watchword in the financial industry. Feinberg reminded bankers that while big data technology may have potential in the field, especially in fraud prevention, there is important governance work to attend to with current information stores.Cloud makes compliance complex
Banks have made the same discovery as the rest of the IT world: the cloud could be a good place to keep increasingly large stores of data. According to Information Management, however, the transition to remote hosting for data raises a series of new and pressing questions for bank executives.
The source noted that governance and maintaining compliance are difficult in the cloud because legislation on data handling was largely crafted with on-site systems in mind. The creators of the regulations did not think ahead and consider the current state of cloud security. According to Information Management, bank executives should ensure contracts with cloud providers leave little ambiguity on security matters.