An Integrated Approach to Tackling Financial Institutions’ Data Challenges

This is a guest post from Yannick De Ceulaer, Senior Financial Controller at Arrayo.

Financial institutions all over the world are facing increasing pressure from regulators and competitors to improve their data management and data governance capabilities–either in the form of  new laws that add to the existing myriad of complex legislation or else the growing importance of data as a source of competitive advantage in the marketplace. These challenges require banks to drastically improve the way they treat their data, resulting in changes such as making sure every data customer has access to real-time data, and putting integrated data structures in place that are flexible to changing external pressures. Ultimately, what these financial institutions need is a data unification system that can efficiently streamline these existing data structures while focusing on satisfying regulators and creating and maintaining sustainable competitive advantages.

Challenging Existing Data Management and Governance Structures

Banking regulations are pushing financial institutions’ data offices to the limit. On the one hand, banks are required to better monitor and understand client behavior in order to minimize the risk and consequences of fraudulent activity. This means that companies need to keep detailed client records that can span over not only country borders but also different branches within the same organization. On the other hand, banks must report on internal financial information to provide legislators with proof of healthy financials and management. This tests the regulatory reporting teams, who are tasked with aggregating and interpreting financial information from different branches and subsidiaries, to the max. Automating these tasks can strongly improve the accuracy of regulatory reports and greatly increase the efficiency of reporting departments and in consequence reduce the ever-increasing costs of compliance.

Furthermore, companies in general are learning that the enormous amount of data being collected is a strategic asset that can result in competitive advantages. Intelligent use of data analytics has the potential to provide insights into consumer behavior that steer management towards policies and strategies that ultimately better serve the customer. However, for data analytics to be effective, analysts need accurate and easy-to-access data sources.

Tackling Challenges Head On

The potential costs of a bad data strategy implementation are huge if financial institutions don’t have efficient implementation tools. Regulators can impose large fines for non-compliance that results from inaccurate or dispersed data. Banks can also lose substantial chunks of market share if they fail to leverage data in developing and maintaining profitable strategies.

Readily available and consistent data is a must in satisfying regulators. Client data can be spread out over several branches and countries, so efficiently linking all the different instances of the same client over multiple databases and data sources is key to effective client monitoring. Therefore, record unification and real-time data access is an important need. 

Moreover, legislators are becoming increasingly demanding over time. Banks are expected to find ways to speed up their regulatory reporting process, emphasizing the need for smart automation. Useful data management solutions must also be flexible and highly scalable, since large corporations are constantly evolving in response to external pressures, thereby adding large amounts of data to the already immense set of databases and data sources.

The message is clear: when done right, data management and data governance can reap large rewards–but this requires accurate, consistent, and easy-accessible data structures.

Arrayo and Tamr: Providing an Integrated Solution

Arrayo and Tamr combine industry-specific expertise and data and technology backgrounds to address these challenges and assist financial institutions in creating efficient data integration implementations. Tamr’s human-guided, machine learning based data unification platform was specifically developed to reduce internal data-related time lags and easily scale for volume, variety and complexity, all while maintaining a focus on outcome-related goals. In addition, Arrayo provides deep subject-matter expertise and extensive knowledge in data management and data governance best practices that enable the implementation of  a well-developed data strategy leveraging Tamr’s data unification platform.

To learn more about how the partnership between Arrayo and Tamr, helps financial institutions tackle data challenges, download our overview sheet here. Or feel free to schedule a demo with Tamr.

To get in touch with Arrayo, reach out Jean-Philippe Michel, EVP via phone or email:
(646) 656-0117

About the Author

Yannick De Ceulaer is Senior Financial Controller at Arrayo and has had multiple finance positions in the consulting industry. He is responsible for financial management and reporting at Arrayo. Yannick has a finance background with a B.S. in Economics, a M.S. in Economics and a M.S. in Business Economics.