The Business Case for Master Data Management Transition Within Financial Institutions
Master data management ensures the creation of a “single source of truth” of information for banks and financial institutions that not only provides that the data remains intact but also makes it available and useable across the entire enterprise.
Once the information foundation of golden data is established with MDM, the data can be used to develop applications and web services as well as train artificial intelligence and machine learning models that help inform sales and marketing decisions, predict and mitigate risk, and improve customer experience.
Mastering data maintains the quality of data, its metadata, and linkages to sources. It helps to ensure the continuous functioning of operations, vouchsafes good decision-making, and facilitates compliance with the increasing burden of financial and non-financial regulations. Importantly, it also lets organizations exploit the full value-adding potential of their data, transforming it from a cost-driven tool to a revenue-generating asset.
Moving to an integrated data management system, however, isn’t without its challenges, especially when part of its purpose is to modernize legacy and siloed data systems. The business case for transformation must balance the many benefits of MDM against the likely costs. Costs will typically have a direct financial impact and indirect costs, such as internal training and change management needs.
This white paper will identify and explain:
- The chief signals that indicate an organization needs to embark on an MDM transition. These include rising costs of ingesting, holding and using data, and when companies restructure.
- The benefits of MDM and how it can help streamline workflows, reduce input error, reduce costs and unlock the full value of data.
- A typical transition journey, from identifying where MDM can be of use, to the preparation and implementation of enterprise-wide change.