Having a robust Data Governance strategy in place is crucial in the banking, finance, and insurance sector now more than ever.
In light of the increasing automation and digitization of workflows, as well as the regulatory compliance requirements, it is essential for the banking, finance, and insurance sectors to implement a strong Data Governance strategy. This involves establishing comprehensive protocols for data collection, processing, and storage, while also prioritizing the accuracy, reliability, and security of the data throughout the company's diverse value chains.
A Seamless Customer Journey with Efficient Data Management
When a company defines its desired customer experience, it focuses on the entire customer journey. These value chains inevitably entail handling vast amounts of sensitive information about both individual and corporate customers. Additionally, new technologies such as robotics and artificial intelligence (AI) will be employed. Therefore, it is crucial to have effective systems in place to ensure that all data is handled securely and reliably. The goals for the customer journey must align with requirements for assessing and managing risk across four main areas: Credit, AML/KYC, Fraud, and Sustainability (ESG).
During the customer onboarding process, external data is collected as part of the decision-making process, used to determine if they want to meet their customers’ needs for loan and financing. The Banks must consider various established guidelines for risk assessment during this phase. Examples include traditional credit assessment and AML/KYC risk detection to comply with anti-money laundering regulations. For years, Infotorg has provided Data Access services to ensure efficient data collection in these processes through our API platform for integration services. Additionally, we provide the web portal Infotorg.no for supplementary data searches.
Once the customer relationship is established, it is necessary to have robust and efficient solutions to maintain both customer and risk data. This involves continuous risk assessment of the entire customer engagement, including ongoing assessment of credit risk for loans and financial services. Furthermore, changes that may affect the bank's risk classification within the AML/KYC area are continually captured. Also, anti-money laundering regulations require updated customer data be available in the bank's systems. Decisions and reclassifications must be documented with the data forming the basis of the decision. All customer and contact information must be maintained to ensure effective 1:1 communication with the bank's customers.
"With Data Governance services from Infotorg, all relevant datasets are maintained directly in the banks' core systems, according to the bank's requirements and needs. Additionally, we provide several datasets used for analytical purposes directly to the bank's data warehouse environments, allowing insights and learning based on accurate data," says Ole Jonassen, Sales Director at Tietoevry.
Ole Jonassen, Sales Director, Tietoevry Industry, Data Services.
Assessment and Evaluation of Insurance Risks
Insurance companies have needs similar to those of banks. Additionally, they must utilize large amounts of data to assess whether external factors may affect the insured object and the insurance relationship over time. This includes everything from pure object data such as properties and vehicles to information about the policyholder. Furthermore, various other datasets such as geography, political conditions, weather, flood and natural disaster risks, and macroeconomic conditions are used. Insurance companies are also subject to reporting requirements under anti-money laundering regulations and must take measures to comply with the law effectively. We refer to all of this as an ecosystem for data within the insurance industry.
Through our Data Governance services, we provide solutions for maintaining object and customer data integrated with the companies' master data solutions. We also produce several datasets used for import into data warehouse environments for analytical purposes.
"We offer businesses the necessary datasets to gain insights into policyholders, insurance objects, and the broader ecosystem associated with them. It is essential for companies to comply with both internal and external regulations regarding data processing," Jonassen explains.
Data Governance as a Critical Success Factor
It is easy to understand that a sound strategy around Data Governance must align with robust services. This is to ensure compliance with laws and regulations, reduce the risk of data loss and security breaches, and increase trust in customers.
Infotorg's distribution platform offers customized datasets from more than 30 public and private data sources. Our services are designed to cater to the diverse needs of our customers. Our teams possess extensive knowledge of various distribution models, regulatory requirements, legal mandates, and data models offered by each data owner.
"When creating Data Governance services, we consider the laws and regulations applicable to the respective customer segments at any given time. We tailor the solutions to fit each company's customer journey. We work with concepts such as Master Data Management, Data Catalog, and Marketplace, which are then linked to our Data Governance services. At Tietoevry, we call this Purposeful Technology, making us a valuable and reliable partner," concludes Jonassen.
Contact Us
Would you like to learn more about how our Data Governance services can assist you and what we are working on to further develop them? Feel free to discuss with our expert Ole J. Jonassen at ole.jonassen@tietoevry.com
Ole works as Sales Director in Tietoevry Industry. He has over 25 years of experience working with Data Services through our Data Access, Data Governance, and Data Intelligence areas. His main focus is on strategic business- and credit solutions for the Banking industry. As a certified AML/KYC Specialist from Vega Integrity (PwC), Ole has a strong footprint developing our AML/KYC Data Services into the next generation of Nordic deliveries.
Contact Ole if you have any questions on the topic.