What’s at Stake
The race to digitalization has made it remarkably simple for companies to collect and use data to make better decisions about their customers. The intensity of the competition across the financial services industry has also incentivized the use of diverse types of data to maximize opportunities for new revenue streams.
So what are the fundamental questions one should keep in mind when charged with leveraging data at scale? Here’s our take on the 3 things that should be at the top of your list.
I – Quality First
While the quality of decisions being made has come under intense scrutiny over the years, the quality of the data upon which those decisions are made has not always received the same level of attention. However, the reputational repercussions of inadequate data sourcing can be hugely destructive to an organization.
- Is the source of information reliable and trustworthy?
- Is it telling you what you need to know about potential prospects?
- Can you safely make substantial financial decisions based on specific data providers?
When millions of dollars are involved, make sure you leverage the right expertise to select the best types of data available.
II – Compliance Proof
Beyond the issue of quality, once the data is incorporated into an organization’s system, it’s very easy to be misinformed or lose sight of what is permissible with that data.
- Are employees sharing personal data in unsecure ways (e.g.: saving files on their laptops) or with other employees and departments that lack proper authorization?
- Are they combining eligible types of data with ineligible sources, such as personal messages or tweets from social media accounts?
- Is the data being used beyond permissible geographical boundaries where a given regulatory framework does not apply?
Those capabilities are often missing and, given the sheer volume of data transacted every single day, it can be overwhelming to even start thinking about it.
At a time when the financial services sector is facing increasing scrutiny over its practices, get the right technology and controls in place to track how your data is being used.
III – Breach as the New Normal
Finally – and most importantly – being prepared for a potential breach is becoming more of a necessity in today’s unsettling climate. While it is getting harder to guarantee total security, having the technical capabilities to react immediately is crucial.
- Do you have the right technology and agreements in place to switch your data providers within a matter of hours and ensure business continuity?
- Can you maintain the trust of your customers by showcasing a high level of transparency in your data selection?
In light of current market trends, protect your organization by ensuring you are able to switch to a different data provider in less than a day in case of a breach.
All these concerns are legitimate – but surmountable. Remember that your organization’s reputation is also at stake. The better the data processes, controls, and technology in place, the more analytical teams can fully focus on unlocking innovation for growth.