Why digital data management for banks? In the digital age, banks have to establish a holistic data management system that brings added value to both banks and customers
Digitization plays a more important role in all industries. Even banks are increasingly realizing that the new technologies offer them new possibilities that make financial services more efficient.
For a long time, digitization was seen as a threat.
For example, because new providers – such as FinTechs – appeared and more and more competitors even came from completely different industries.
Customer expectations are rising continuously: Conventional banking services are actually being forced to act. With technological change, new business models are emerging and the organizational forms of work are changing. Banks are transforming into technology companies.
There are a number of providers of data management solutions that are precisely tailored to the financial sector, among other things.
Some start-ups are also becoming partners of the bank with their software solutions and IT tools.
Data management: data is the new gold
More and more people working online automatically leave more and more traces on the internet.
Big data is gaining in importance due to the digitization of society.
Modern banks take advantage of this with digital data management, because data alone is not enough.
It is crucial to extract the information from the data that leads to new insights.
After all, data is the raw material for faster decision-making. With digital data management, customer-specific data can be recorded in a uniform manner, and conversely, the customer experience can also be improved.
The banks are more versatile, more efficient and, above all, competitive. It is crucial to prepare data in such a way that the algorithms can work with them, because they can be used to develop predictive models.
Using artificial intelligence and machine learning, patterns and relationships can be derived from the data in order to make future predictions – for example in the area of buying and selling decisions. With this analysis, the financial service providers recognize trends more quickly and always keep up with the times.
Digital data management tasks
The aim of digital data management is to create new products from the information obtained.
The better a company manages this, the further it positions itself on the road to victory in the competition.
Digital data management makes it easier for banks to implement the new services. However, the basic task of digital data management is first of all that the data becomes more secure, protected against hacker attacks and only authorized persons can access the stored data.
The basics also include ensuring sufficient storage capacity and smooth processes so that computing and performance are not impaired despite the increasing amount of data.
Banks very often have many data pools, which are, however, geographically separated from one another.
Digital data management links these different systems – the data flows together via interfaces in order to generate synergies.
Data protection requires data management in accordance with the law
Banks have particularly trustworthy data.
The increasingly stricter documentation requirements and privacy policies and laws are forcing financial institutions to implement professional data governance.
This means that above all the processes of data acquisition and data management are optimized.
The creation of a sound data basis and professional data management therefore have the highest priority.
Transparency is a catchphrase that is also one of the winners in the age of digitization: With digital data management, processes can be tracked more easily and create new trust.
Reasons for Digital Data Management for Banks
Banks and financial institutions use digital data management to:
- to make the existing treasure trove of data tangible
- derive useful information from big data
- Dismantle administration
- Simplify and accelerate processes
- develop new digital products