Over the last few years, the banking and financial services branch has seen itself repeatedly confronted with bad news. The financial crisis increased pressure on global financial markets, and since then the branch has been trying hard to restore its credibility. The processes of data acquisition, data management and financial reporting processes must improve, as they have an immediate effect on key operating figures and rating models. Increased automation of these business processes also leads to increases in efficiency; and thereby to a higher level of profitability for companies involved. But automation also requires a higher level of data quality, therefore the necessity for Professional Data Governance. Only then is effective management of customer master data and precise knowledge about the customer possible.
Eliminate data quality problems
Compliance with the legal requirements for avoiding money laundering, as well as the implementation of international invoicing (billing) regulations – such as IFRS, and capital requirements according to Basel III – are impossible without binding, trustworthy data. Companies often have incorrect, inaccurate data and duplicates from different IT systems, meaning that the increased demands on risk management, such as prescribed by BaFin (the German Federal Financial Supervisory Authority), cannot be fulfilled. Fraud prevention measures and reliable matching against embargo lists are equally unsuccessful when based on inconsistent data. Therefore, thorough elimination of data quality problems must have the highest priority for all banks and financial service providers.