ASG Technologies Vice President IM APAC Kaushik Bagchi discusses four emerging trends that are shaping data trust priorities in the financial services sector.
By Kaushik Bagchi
Renowned Statistician W Edwards Deming once said, “In God we trust. All others must bring data.” This maxim still rings true. The volume, velocity and diversity of data continue to grow at an exponential pace globally. Data is being consumed in real-time and generated through multiple channels of business and various enterprise interaction. With this environment, data trust has become a critical element that differentiates successful businesses from the rest.
Today’s enterprises leverage data to make faster and better business decisions, minimise risk arising from incorrect data and aim to become audit-ready with trusted data. Customers want to know what personal data an organisation has on them, how their data is processed and whether their data is safe and well-managed.
Soon, there will be a need for demonstrable evidence that any data from capture to consent and acceptance of non-use is recorded, auditable and governed. This poses a need for businesses to rethink and rearchitect the underlying data management frameworks that they need to adopt.
With growing consumer expectations, governments are required to establish strong processes to ensure data security and efficient data management. To implement these processes, the government needs to align legislation with the evolving needs of a digital society. Recently, the government of Singapore proposed significant changes to its Personal Data Protection Act of 2012 (PDPA). The proposed amendments seek to provide greater autonomy for consumers over their personal data and stronger sanctions to enforce data protection laws. Once implemented, the revised bill will have a far-reaching impact on how enterprises collect, utilise and manage personal data.
Undoubtedly, this is the decade of empowering business growth through trusted data. Data trust is created by knowing who is using the data, what it means to the business, where it exists, where it came from, when it was captured and how it changed over time. Establishing data trust across the data supply chain is possible only by building platforms that allow governed interaction of people, process and technology.
As one of the most data-intensive sectors, the financial services industry has been taking significant steps toward data trust through improved data security and management. With the developments in the technology, robust regulations and evolving consumer needs, four emerging trends are shaping data trust priorities in the financial services sector:
There is a growing need to demonstrate system-driven traceability of data flow from a cell or a field in a report all the way to the different sources from which each contributing data element has originated. Be it a regulatory or a business report, it is becoming imperative that organisations are able to answer questions around inconsistency and inaccuracy of data in their reports. This aids in error-free regulatory reporting and giving easy answers to reviews and queries, thereby making companies audit-ready.
Right to Forget
One of the key aspects of data privacy is the customer’s right to be forgotten. A customer could want companies to restrict or prevent disclosure of personal data and withdraw their consent for processing their data.
In order to execute and demonstrate this right to forget, companies need to know what customer data is residing in what forms within their complex application landscape. With technology, companies can establish an automated discovery of this landscape and allow an impact analysis of the change in data consent even before it actually happens.
Critical business decisions are based on data. It goes without saying, good data leads to better business decisions. Data helps in understanding existing products and services better, which is a foundational layer for companies to launch new products, enhance existing offers, and cross-sell to current customers. When data trust is established, companies can use the right data for any business activity without rework, thereby saving a substantial amount of time and money. Globally, investors give higher valuations to companies that report trusted data.
Cloud Data Migration
Migration of applications and data to the cloud are happening at a rapid pace. It is important, however, to be judicious and migrate only what makes sense for the business. Regulations on data privacy will also play an important role when considering cloud migration. Moreover, companies need to know what personal data resides in the cloud and who is using it. Identifying and classifying data is critical before moving to the cloud so that what does not need to be moved stays and what has been moved can be traceable.
At the rate things are changing, making sense of data, building trust across the data supply chain and using trusted data are essential steps for business growth and continuity. As businesses chart out their journey toward modernisation and digitalisation, organisations that are able to strike the right balance between people, process and technology successfully increase trust in data and derive more benefit from their invaluable data asset.
(Ed. Featured image by Photographer Cottonbro.)