As most companies today face remarkable data overload, the importance of effective data governance frameworks continues to grow. Banks in particular need to derive value from data for both the innovation and modernization of their operations as well as for continued compliance and ethical management of the data they work with. In this guide, we cover the details of how and why banks can benefit from a strong data governance framework.
How does data governance work in banking?
Today’s economic landscape requires most if not all industries to enhance their data-driven capabilities in the market to maintain a competitive edge. The banking sector is no exception. The introduction of data governance models in banking gives banks the resources they need to upgrade their current procedures and policies to improve their data protection mechanisms.
Data governance specifications also improve banks’ data analysis capabilities for better decision-making. Data governance in banking means delivering tools for the banking sector to not only optimize its effectiveness and innovation but also support risk management and regulatory reporting.
What does a data governance program include?
A data governance program frequently involves:
Installing data format standards.
Pinpointing data that requires protection.
Tagging data types and assigning roles and responsibilities.
Setting up metrics to quantify the effectiveness of the governance program.
Using metrics-based programs to assess, identify, monitor and improve the governance program.