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Harness the Power of Data & Analytics to Accelerate Business Outcomes
Highlights
- Banks and financial institutions must adopt newer technologies and tools that break down data silos and integrate disparate data assets.
- A data marketplace platform promotes democratization of data through curated products and solutions.
- Data democratization helps institutions commoditize data for effective usage and comply with governance and regulatory norms.
- It can also help them commercialize data and unlock new business avenues.
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Data governance
Regulatory demands and myriad challenges around effective data governance and compliance are constantly evolving.
Data is the basis on which the financial world operates. However, leveraging historical and real-time data efficiently is difficult. A major challenge that financial institutions face today isn’t a lack of data but the effective utilization of data. They need to adopt next-gen technologies and tools that enable broader, demonstrative data usage and access. At the same time, they need to explore new ways of improving the quality of data insights while breaking down data silos.
Robust governance when applied within the company’s analytical framework provides a 360-degree view of the enterprise data landscape. It yields compliance-related advantages too by strengthening efforts toward risk management, investments into data strategies, and future-proofing companies against changing data regulations.
A data marketplace democratizes data through curated products to help banks and financial institutions remove silos, improve data governance, and enable commercialization.
Data democratization
Often, business owners have limited visibility when another line of business within the organization acquires data that may prove useful to them.
Banks and financial institutions are net buyers of data. However, the discoverability and even awareness of the existence of such data between users, remains a challenge. Silos prevent users from acquiring the required data to take informed business decisions. This can adversely impact customer experience. Real-time data discovery and sharing must be enabled with appropriate checks and balances.
This ‘democratizing of data’ will not only help improve customer experience but also eliminate repeat spend on data purchases within the organization. They can then publish data across the board for timely analysis and reporting for authorized stakeholders or a larger cohort of users within the enterprise. This can be achieved through a data marketplace platform.
Data marketplace
Much like a stock market trades in securities, a data marketplace for banks and financial institutions trades data and democratizes it.
Commoditized data helps users seamlessly transcend geographies, processes, and security restrictions. They can capitalize on upsell or cross-sell opportunities, identify new products/services, and discover new customer segments and build on mass personalization. The fundamental building block of a data marketplace is its data product which is metadata-based. With the right capabilities, it can also improve governance through accurate classification, curation, quality, and lineage of data.
For data marketplace platforms to work, institutions must provide visibility into data sources and repositories, and instil a culture of data democratization. This is a complex challenge for them to overcome. When implemented efficiently, the required stakeholders (based on their authorization levels) can get ready access to data assets. The data can then be made tradeable where the platform can support the monetary exchange of data. With capabilities such as a pricing model and enforceable terms of use, the goal to enterprise data commercialization can be achieved.
Commercializing data
Think of the data marketplace as a place where enterprise data and insights are published and consumed by providers and consumers.
This could help providers publish their data products. Consumers can search, discover, and publish their requirements. With a data marketplace platform, business users could extract value from the data and identify top and bottom-line opportunities. The platform enables discovery, democratization, monetization, and commercialization of data. It further promotes ethical data exchange between entities while maintaining strict compliance with privacy, trust, risk, legal, and technical aspects of enterprise data.
This leads to seamless data exchange across the enterprise, the ecosystem, and/or cross-industry collaboration. All this while promoting data governance through curated, fit-for-purpose products pre-published with correct lineage, provenance, and privacy preservation.
Data-driven banking
Data marketplace platforms will deliver on the Business 4.0™ levers of exponential value, mass personalization, leveraging ecosystems, and embracing risk.
Today, banks and financial institutions address data governance sporadically. We believe the concept of an enterprise data marketplace is rapidly gaining traction in the industry. Some institutions had manual processes to make data available in the past. This was only done when the requirement arose. But a holistic platform can help keep data streams open and readily available regardless of where the need stems from or when it is needed.
Every day, regulators find novel ways to tweak existing data regulations as well as introduce new compliance policies. Addressing these dynamic changes and mapping it to the concerned function will improve with a data marketplace. This will help banks and other institutions keep up with changing regulations and, more importantly, interpret them correctly and efficiently.
