The onset of the digital age at the end of the 20th century led to a proliferation of data that revolutionized how organizations gather, analyze and leverage information. In fact, in 2017, The Economist claimed that “the world’s most valuable resource is no longer oil, but data.”1 Fast forward to today, and technologies such as AI, social media, e-commerce and cloud computing have created an abundance of data that has profoundly changed the business world. Companies now have access to vast data sets to identify trends, predict future outcomes and improve operations. This information guides their decision-making, enhancing customer understanding and operational efficiency, and fostering innovation. In short, data is the key to increased agility and a competitive edge. Perhaps no industry has been impacted by this data boom more than banking. Every swipe, transfer, deposit, investment, purchase, sale and loan generates a new data point. With billions of accounts worldwide, the prevalence of mobile/online banking and the growth of fintech and digital assets, banks need help navigating the staggering amount of real-time data that is available to them. With that arise both challenges and opportunities: From Compliance to Competitive Edge Insights on Data in Banking By Lewis “Mac” Garber, Partner, Forvis Mazars Challenges • Siloed, fragmented data. • Poor quality and inconsistent data. • High level of regulatory compliance and privacy expectations. • Cyber risks. • Outdated technology to handle modern data volumes and analytics demands. • Effective governance of emerging technologies. Opportunities • Operational efficiency. • Personalized customer experiences. • Innovation and product development. • Use of AI and analytics to simplify regulatory compliance and growth. Effectively managing data is a complicated endeavor, but absolutely crucial for navigating the future. To position banks for success, we have highlighted areas in which banks can unlock the full value of their data while maintaining trust, enabling transformation and driving growth. These areas include: 1. Governance and Compliance: Stakeholders are placing greater importance on both deep data knowledge and robust governance, emphasizing the ability to manage data with a high degree of transparency and accountability. A critical element across financial institutions, enterprise data offices or programs is the strengthening of an accountability model to address data management risks. A data accountability framework helps ensure that roles are well defined, data quality is maintained and compliance risks are managed, laying the foundation for responsible data use across the enterprise. 32
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