Financial companies constantly face changing governmental rules and regulations. These rules seek to create data transparency, encourage responsible decision-making by financial institutions, and protect consumers. The Fair Credit Reporting Act (FCRA), requires organizations to provide accurate and complete information, correct inaccurate information, and implement policies and procedures to ensure data accuracy.
Poor data quality can result in significant fines to financial institutions and can even result in costly litigation. While institutions have attempted to meet compliance standards by investing in additional resources and staff, years of insufficient data management practices may have created data silos that make it difficult to analyze data across systems. Many institutions have data management systems that need to be modernized to make their data readily available to regulators. To meet evolving regulatory requirements, financial institutions need to approach data governance proactively.
For your data management program to succeed, your executive leadership must understand and support your initiatives. This is critical to ensure systematic changes in your data management strategy and funding for additional staff and technology. By demonstrating how your data management strategy helps achieve regulatory compliance and avoid fines, you’re more likely to receive their buy-in.
To gain a holistic view of your customer records, your organization needs to invest in the necessary infrastructure and software to standardize your data. Profiling and cleansing data helps to ensure consistency and enables you to flag data that’s inaccurate, incomplete, or not standardized properly. Once the information across your databases is standardized, you can begin consolidating the data to create a single customer view.
Banks are responsible for maintaining accurate and complete records for their customers. In addition to emphasizing the quality of legacy customer data, they should create systems to ensure that the information entering their systems is accurate and fit for purpose. Email, address, and phone validation solutions ensure that the information entering your call centers and websites is valid.
Regulatory fines can cost millions of dollars and shake shareholder confidence, resulting in greater financial losses. Setting performance metrics and measuring your ROI allows you to demonstrate the value of your data management strategy. This also provides a strong business case for receiving ongoing executive support.
Data stewards are often responsible for data integrity and frequently institutions don’t have processes in place to ensure consistency across the organization. As a result, data stewards create one-off spreadsheets or codes to address immediate issues, but these solutions are not scalable. By investing in data management software, your data stewards can work more efficiently and make data analysis more accessible.
Give your analysts the tools to profile, transform, and manage credit data over time—and to ensure your compliance with the FCRA. Our solution, DataArc 360, checks data files against the Metro 2® reporting standard and flags discrepancies before they are submitted to the credit bureaus.
Our solution’s pre-built rules help data furnishers provide credit reporting agencies with accurate data and minimize credit reporting disputes. This data management solution can easily quantify trends within your data and demonstrate a measurable ROI. We have the tools to ensure your compliance with financial regulations.
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