Data Series Insight 4: Managing the Change
In the previous Data Series Insight, I laid out an approach to creating an enterprise-wide solution for data. Whilst this is a much needed and necessary task, I made it clear that it is both a resource and time heavy commitment. Nonetheless, by taking incremental steps financial institutions can begin this process. Firstly, they need to agree on their strategic objectives for their own data – what is the end goal? Secondly, a technology solution is required to bring the data landscape together. Thirdly, with strategic objectives completed, a ‘bite-sized’ approach to data improvement can be taken. This approach concentrates on pulling together an accurate data set for each separate regulation (although commonalities across data sets will be identified), which over time will result in a data pool that meets all requirements.
Reviewing a large data set with a client twelve-months ago, we both found things wrong with it. I am not going to rehash what the problems were, rather I’d like to share how we agreed to tackle it.
At the outset, we agreed that a Regulation Blueprint should be produced to detail the regulatory requirements in full. Having aligned our initial strategic objective, which in itself is not an insignificant task, we elected to focus on a specific, data-intensive regulation, and incrementally add new regulations and incorporate existing ones over time. By leveraging the correct technology solution and having completed the initial specific regulation, all subsequent additions were checked for data duplicity against our golden source.
As part of this process, we met with key staff to understand the current state of the data based on existing feeds and processes; thereby allowing tactical process improvements (i.e. savings) to be made throughout the life of the programme of work.
Upon completion of the initial tranche of regulations, the results were presented to senior stakeholders with a plan to encompass further regulations. We knew they had taken our message to heart, as they were already evaluating where to drive the solution to next, could major savings be made in the middle office? Could their operational risks be reduced? Could the retail bank gain a competitive advantage?
At the end of this process, our client will have an accurate, complete, consistent and compliant data set for regulation. In answer to the three questions above; yes, all three are possible as the possibilities are endless if an organisation takes control of its data.
I hope that you found the Data Series Insights to be helpful in shining a light on possible solutions to some of the challenges you face.