Data management trends in the financial services sector has been saved
Perspectives
Data management trends in the financial services sector
Why invest in offensive and defensive data capabilities?
The new data management trends in the financial services sector are inspiring financial institutions to refresh their data priorities and focus areas. Many are establishing and stabilizing their foundational data and analytics assets on the cloud—and they are increasingly investing in offensive and defensive data capabilities.
The evolving data landscape
Over the past few years, as data and technology have advanced, so have regulators’ expectations and market competition. New technologies, such as cloud, artificial intelligence (AI) and machine learning (ML), open application programming interfaces (APIs), and the like, are beginning to change financial institutions’ data supply chains, compelling data and technology leaders to contemplate massive modernization of tools and infrastructure.
At the same time, regulators have become increasingly savvy. Driven by increasing data literacy and capabilities, regulators’ demand for data that is more granular, traceable, and collected more frequently in an organized way has begun to increase. Market competition has also heightened the need to innovate and invest in data assets. To compete with new fintech entrants, institutions are embarking on a redesign of traditional business models and value chains, anchored on modern platforms that amplify financial institutions’ data assets.
The changing role of data leaders
The role of the chief information officer (CIO) and chief data officer (CDO) continues to evolve in line with changes to technological capabilities and the regulatory landscape. CIOs and CDOs are increasingly transitioning from being policy enforcers to also being operators as well as enablers. They now are being tasked with delivering data and data services for strategic business initiatives related to finance, customer experience, and digital. Financial institutions have been evolving their data operating models to make the most of their technology and data investments.
Investments in defensive and offensive agendas
Emerging technology and the continued evolution of regulatory requirements have led the financial sector to refresh its data priorities and focus areas. As financial institutions establish and stabilize their foundational data and analytics assets on the cloud, they are investing in offensive and defensive data capabilities.
Offensive agenda
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Finance and risk—at the core
Financial institutions are automating finance and risk processes while empowering business units with real-time insights and smarter scenario planning. Beyond automation, institutions are focused on new areas of risk, such as climate, as well as new “stripes” of existing risk, such as concentration.
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Customer-centricity and digital engagement
Customers increasingly expect increased levels of flexibility and customization by firms. Financial institutions are managing granular customer data to deliver integrated experiences and hyper-personalized services, while enabling cross-function client data integration and exchange.
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Analytics-driven growth agenda
After stabilizing foundational assets, financial institutions are shifting their focus toward value-generating initiatives and are focusing not just on unlocking efficiencies, but also on reimagining business models, extending product portfolios, and driving innovation.
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Defensive agenda
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Regulatory reporting
As regulators are becoming more sophisticated and asking for more granular and higher-quality data, financial institutions are working to meet evolving regulatory requirements and expectations, to support changing compliance objectives, and to drive efficiencies in reporting processes.
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Data risk, health, and resiliency
Financial institutions are focusing more on data accuracy early in the data life cycle and defining reporting metrics that are designed to demonstrate the health of data to senior management. Cyber and data risk remains a top priority; boards are looking to understand enterprise data health.
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Data infrastructure modernization
As financial services companies adopt next-gen technologies, embrace public cloud infrastructure, foster agility, and support open banking and financial services, focusing on implementing a blend of technology, tools, and data based on the highest priority use cases will be a critical component of the success of modernization efforts.
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Contacts
Lakshmanan (Bala) Balachander |
Cory Liepold |
Deepak Ramakrishnan |
Dinesh Patel |
Satish Iyengar |
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