An Inside Look into the Financial Industry

Making the right decisions at the right time can determine whether a financial company survives or thrives in this highly competitive industry. With the rise of Fintech, it is becoming increasingly important for the financial services industry to leverage technology to improve overall enterprise performance, conform to regulatory mandates, and increase business value of customer relationships. In our experience, the financial institutions that can successfully maintain strong data governance, and data risk management drive the broadest value from their generated data. Banking & capital markets, asset & wealth management, private equity firms, insurance companies, and other financial services all want to turn their data into an asset. Hence, there is high pressure for a strong enterprise data management strategy that addresses the industry-specific data growth challenges as shown below.

 

Banking & Capital Markets

Optimizing risk management policies, regulatory reforms, strict capital requirements, a low interest rate environment, and enhanced analytics & reporting requirements are all challenges the banking and capital markets must address to stay ahead. The leading enterprises in this industry are making these a priority to identify the greatest opportunities for growth, provide effective ways to raise and manage capital, and also staying compliant.

Asset & Wealth Management

Increase in regulations, new digital delivery channels, shifting wealth demographics, and cyber security threats, are a few challenges wealth managers face to stay competitive and compliant. As firms take on new initiatives, it results in larger data volumes and complexity, making it harder to move, manage, and modernize data. High-quality data and strong data governance are a necessity as wealth managers seek to expand globally, drive sales numbers, gain business insights, and leverage fintech capabilities.

Private Equity Firms

Investors are facing greater demands for transparency, generating substantial EBIT growth in portfolio companies, improved compliancy for revised regulations, and seamless transitions for acquisitions and mergers when overseeing IT organization restructuring. The leading private equity firms that are confronting these pressures have found that reliable data management is the backbone to make better business decisions, mitigate operational risks, and achieve greater profitability and ROI.

Insurance Companies

For insurance companies to meet their potential, it is imperative to meet the demands of policyholders, protect data from cyber attacks and fraud, manage data ownership, and process & analyze customer policy data records with efficiency. The organizations that embrace these hurdles become better equipped to innovate customer and distribution relationships, accurately assess and price risk, and gain valuable insights.

Our Observation

Financial enterprises with a strong data management strategy can make strategic business decisions, react to market changes, and respond to regulator’s requests more effectively and swiftly. As Data Dynamics has worked with 6 of the 12 largest global banks, it is noticeable that the financial enterprises that address the following challenges have chosen to thrive with a strong competitive advantage.

Financial institutions are going through a digital transformation and effective data management will be core to driving profitability.

 

Is the Value of your Data Unlocked?

With data residing in disparate siloed systems, it becomes increasingly difficult, cost intensive, and time consuming to extract insights from financial applications. Without consistency and standardization, the application’s data stored in silos causes redundant and inaccurate data. Furthermore, data silos do not enable reciprocal operations with other systems which reduces productivity and overall data governance.

Are you Mitigating Risk using Standardized Policies for Effective Data Governance?

Financial organizations are closely regulated, so they are compelled to keep data based on regulatory requirements, and potentially up to an infinite period of time. To remain compliant and reduce risk, it is necessary for financial institutions to know the data they’re storing and ensure secure access and controls. With standardized data classification and retention policies, financial organizations can adhere to existing and emerging regulations while maintaining their company’s reputation in cases of lawsuits, regulatory fiascos, etc.

Do you Understand how to Manage your Overall Data Growth?

As data is growing exponentially, understanding your data environment becomes central to managing your overall data growth. Identifying dark data, planning optimal storage solutions, ensuring data quality, and having access to your data anytime and anywhere become a crucial challenge. However, all of this can be simply solved with clarity and understanding of your data environment.

Our Recommendation

Metadata Provides Insight into a Vast Majority of the Data Characteristics

Metadata file analytics can scan the entire data environment to provide a visualization of the owner, access behavior, type, size, and age of the data. Identifying data workloads and differentiating critical data from dark data gives clarity of the data environment. This way, data sets can be moved to the optimal location, and your data turns from a risk to a strategic asset.

Mitigate Risk with Standardized Policies for Effective Data Management

Unstructured data requires standardization in order to avoid financial organizations from facing compliance and legal exposure as well as security risks. With standardized policies in place, organizations can outline their business objectives to intelligently manage their data. Standardized policies decrease human errors, so organizations can mitigate risk and give compliance a top priority.

Efficiently Manage your Data in a Hybrid Cloud

Utilizing a hybrid cloud where data retention is tied to policies, derives the greatest value which results from optimal data placement. Decentralizing data management to empower the business ensures effective usage of the data while reigning in storage costs. Secondly, hybrid cloud uses metadata for faster data retrieval instead of sifting through file structures. Also, hybrid cloud can easily scale data to petabytes without restrictions to manage the rapid data growth.

Modernize your Data with Custom Metadata Tags for Reporting and Analytics Capabilities

Data is found across all financial applications, and the inclusion of custom metadata tagging enables search, discovery and understanding the data relationships to get the most value. Certain data sets can be tagged with data retention and data archival policies. Application owners and end users can classify their data through meta data tagging, thereby adding further intelligence into their data repositories. Overall, a strong data infrastructure can be built with proper key and tag management for quality data governance and reporting and deep analysis capabilities.

 

Journey to a Better Business

Although the factors outlined here seem self-evident, most financial organizations manage data with point solutions rather than a holistic data management approach and platform. StorageX is a dynamic file management platform that empowers you to analyze, move, manage and modernize your data where you need it and when you need it, from data centers to the hybrid or public cloud. StorageX is built using industry standards and operates completely out of the data path, freeing your data from technology lock-in, complexity and risk. Financial Enterprises who are consolidating data centers and modernizing legacy applications rely on StorageX for a one-stop solution.

StorageX and its Business-Focused Benefits

Compliance: Understand your data

Risk Mitigation: Effective access and placement of data

Cost Savings: Movement of data to most cost-effective storage based on business need

Increased Effectiveness: Categorization of data for quicker searches and retrieval

Awareness: Provide transparency of data to their owners

Regulatory: Store data in a secure yet accessible manner

Transformation: Enable data management in a hybrid cloud

 

About Us

Data Dynamics is a leader in intelligent file management solutions that empower enterprises to seamlessly analyze, move, manage and modernize critical data across hybrid, cloud and object-based storage infrastructures for true business transformation.

How does Data Dynamics give its customers a competitive edge when it comes to data management solutions? We help businesses and IT come together to achieve business objectives while intelligently managing enterprise data.

Data Dynamics has worked with 25 of the Fortune 100 companies and 6 of the 12 largest banks in the world. We have optimized more than 200 PB of data, saved 100+ years of project time, and over $100 million total cost of storage saved. Data Dynamics has worked with multiple financial enterprises to solve key business challenges and turn their data from a risk to an asset.