Why is Master Data Management (MDM) Vital for Banking and Financial Services?
Data becomes an asset when it is harnessed and managed effectively. Enterprises face numerous challenges regarding data such as data duplication and multiple references that decrease the data value. The banking and financial sector enterprises generate a plethora of data regarding the customers buying history, financial transactions, information of the product and services, and other data which may be sourced from smartphone applications and other related devices. This enormous data creates valuable opportunities if handled well and used consistently.
Master Data Management Tool is largely used in banks and other financial institutions, as other tools make it difficult to maintain a holistic view of the customers. For instance, a customer has a savings account, credit card, car loan, and mortgage account, etc MDM helps in providing a common and a single data reference focusing on one central database instead of searching for data across multiple sources.
Did you know that poor quality data costs the economy of the United States $3.1 trillion per year? The inaccurate data such as data duplication, departmental silos, human errors, etc can be easily identifiable and fixed. Master Data Management Solutions help to avoid all the types of problems by using industry best practices and providing maximized data control, efficiency and insights. The important things to ensure when entering your existing data or new data are as follows.
- Data should be free from errors, as accuracy is the key
- Without any gaps in the collections, data should be comprehensive and complete
- The data stored in one system should not contradict the same type of data in another and should be consistent
- The data should be in the correct format and must be standardized
- Data must be collected at the right moment in time
- Data must be up-to-date and must have access to the most relevant information across systems
- Data must be extracted from a credible source and must be legitimate
BFSI enterprises derive a plethora of benefits from MDM including complying with regulatory reporting requirements and generating reports for the auditors. It is vital to have a central source of data intelligence for the banking and financial institutions as there is a tremendous growth of new payment mechanisms via mobile and other systems.
An ideal MDM strategy enables banking and financial institutions to focus and harness their data and generate meaningful insights by:
- Eliminating and avoiding data redundancy and providing only one central repository for common data
- Streamlining the compliance reporting
- Increasing business and operational efficiency
- Providing a comprehensive view of the customer data
- Focusing on data quality and mitigating the risks regarding inaccurate data
- Reducing the operating costs related to data management
Amurta’s MDM Tool deals with the opportunities related to user-generated, unstructured, and machine-generated data. Amurta’s Master Data Management Platform is equipped with rich functionalities required by small to large enterprises globally. Please do contact us at +1 888 840 0098 or you can email us at firstname.lastname@example.org and we would be happy to assist you.