Transparency and accuracy are characteristics of data that are equally important for financial institutions’ compliance processes and the rollout of artificial intelligence applications.
Without those qualities, regulators will have little trust in the disclosures of firms’ compliance teams and any AI technology will be prone to misleading and potentially damaging outputs.To ensure these two facets of data are optimised, firms need to have their data lineage processes in order; that enables data managers to track the origination of their data, where it is going, who is using it and how it has been transformed.
Of course, this isn’t an easy task. To help capital market practitioners A-Team Live’s next webinar will bring together a panel of experts to discuss the best practice within the discipline.
Missing Link
The event, entitled “End-to-End Lineage for Financial Services: The Missing Link for Both Compliance and AI Readiness” will see panellists examine the fundamentals of data lineage and, with the aid of real-world case studies and calling on their own personal experience, they will delve into the best practices and solutions to help institutions empower their lineage processes.
“End-to-end data lineage – from the source business applications, through many data platforms and data integration tools, all the way to business intelligence tools – has always been the differentiator in everything from data catalogues to powerful metadata management (MM) platforms capable of change management and stitching across hybrid data architectures (involving multi-vendor traditional on prem and cloud technologies),” Meta Integration chief executive Christian Bremeau, one of the webinar speakers, told Data Management Insight.
“Not only that, end-to-end data lineage is critical for compliance such as GDPR to track PII, but also for much more finance compliance reporting where it is critical to have definitive proof of where numbers come from in reports.”
Key Pathways
The webinar will see Bremeau joined by Murali Duvapu, Data Governance Executive at Scotiabank and Cheryl Benoit, Executive Director – Operational Risk at Mizuho. Data Management Insight editor Mark McCord will moderate the session.
The visualisation and recording of the pathways of data helps to build trust in the information because it gives understanding not only to how that data has been transformed but also indicates where it might have issues. This is important for regulatory compliance because it demonstrates openness that fosters trust.
Without end-to-end lineage, companies cannot truly prove compliance or understand their data’s complete lifecycle, said Mizuho’s Benoit.
“End-to-end lineage provides a clear view of how data moves from source systems through transformations to regulatory reports,” Benoit told Data Management Insight. “This traceability is essential for meeting regulators’ expectations on accuracy, auditability and governance. It ensures firms can explain where numbers come from and defend data integrity.”
AI Application
For AI, complete lineage records show exactly where AI training data comes from, helping validate its quality and reliability; it helps identify potential biases or contamination in AI models; it provides visibility into data sources, helping in compliance with AI regulations like the EU AI Act; and, helps to detect and address potential data privacy issues or inappropriate data usage in AI systems.
“Just like business intelligence, AI needs similar data product trust scores in which data lineage is becoming even more critical,” said Bremeau of Meta Integration, the session’s sponsor.
“AI also needs data context where the semantic models are critical. AI readiness can be fast-tracked by automatically generating such semantic models from the knowledge within the data lineage deep inside the data integration and data intelligence tools.”
Benoit echoed those comments.
“Reliable lineage enables AI adoption with transparent data flows, firms can ensure models are built on trusted, well-governed data, reducing bias, improving explainability and accelerating safe deployment of AI in financial services.”
- A-Team Live’s End-to-End Lineage for Financial Services: The Missing Link for Both Compliance and AI Readiness will be held on October 8 at 10:00am ET; 3:00pm London; and, 4:00pm CET
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