The data management demands placed on financial organizations are shifting rapidly this year under new pressures around customer information, bridging disparate data sources and properly organizing information for daily use, according to the latest industry forecasts.
To address this, many financial organizations are focusing efforts on creating central repositories of data with centralized regulatory management offices that control access and analysis. With more decisions falling to lead data officers and their teams, new platforms are needed to provide support.
Enterprise content management platforms have risen as one of the chief support options because their structure and rules governance can help ensure proper data use across three major data management trends and threats.
Daily Data Demands
Balance sheet efficiency was a critical challenge in 2015 and industry forecasts show that it will continue to be a driving trend of 2016’s data management demands as organizations look to improve cross-sells and customer relationship.
Overall balance sheet management also is increasingly important as regulatory pressure for stress testing grows relative to the stability of different product lines. How banks respond to these challenges will vary, but it will depend on daily data.
Real-time pricing of loans, mortgages, credit card APRs and other products have become the norm. We run this data and make adjustments based on a wide range of data on the individual consumer, as well as the market as a whole. Every adjustment must be based on the most relevant and up-to-date information or it risks no longer being competitive — either by not providing a competitive offer or by significantly harming the ROI from that customer.
Enterprise content management systems are becoming an important piece in managing all of this daily data because it can ensure that all employees and analyst are forecasting on the right data.
A smart ECM can ensure that everyone in a bank branch is handing out the right factsheet on customer relationship programs, that call centers and online sales reps are pitching up-sell or cross-sell products that have the highest returns, and that they’re managing the creation of new product lines.
Understanding Warehousing and Distribution
A strong ECM can help facilitate dispersion of data management responsibilities through role-based user permissions. This simplifies the process somewhat and makes it easier to manage as compared to previous years, when one person was responsible for all of an organization’s data.
Although ECM use will eventually make data easier to handle, the decision-making and delegation process behind this policy shift will be somewhat time-consuming initially. As part of addressing core 2016 data management demands, companies will need to weigh this appropriately and determine when best to leverage that shift.
Adoption and application of enterprise content management is best done ahead of stress testing and new attempts to place data responsibilities. We believe the ECM model allows leadership to assign tasks to teams, thereby introducing additional checks and ensuring compliance.
Common governance division is among product lines, where a different member may control local powers of attorney while mortgage notes often have regional support with a separate member handling data collection and processing for stress testing reports.
The Coming Data Flood
The growth of customer data, not just product data, is unparalleled as new systems arrive that allow us to review and analyze all of our past information, as well as the new social and direct data streams customers are willing to provide.
Analysis and customer data storage will become sacrosanct and require newer measures of data procurement, which ECMs can facilitate by standardizing many of the common data practices. Customer data is also playing a significant role in current workflows, forcing you to find new ways to respond to the increased number of touch points before and after a financial product is sold or secured.
Payment policies are changing as customers adapt to more online options and mobile apps, which are generating more significant changes in your interchange revenue and possibly harming brand recognition for certain firms. Financial organizations don’t yet understand the coming trends, so they’re collecting all of the information they can. This is pushing the boundaries of warehousing, governance and analysis, though an ECM provides support for all three operations.
Machine learning is also projected to take on a more prominent role in 2016 data management demands, and much of it will rely on this new consumer data. Profiles for fraud, risk and abuse will become more pronounced and effective, though they made need a larger reach.
Much like EU insurance companies have begun to share data to fight fraud, industry forecasts suggest that this method may be needed to stave off significant financial fraud rings elsewhere. Enterprise content management will play a major role in the data collection and sharing due to its ability to properly structure everything, as well as its governance capabilities that limit access based on roles.