Financial services information technology (IT) has transformed from order taker to strategic business partner. As part of this transformation, IT organizations are finding they must address key challenges with legacy modernization , data management and digital transformation.
MuleSoft has launched a three-part white paper series discussing these challenges and how financial institutions are overcoming them. In the first installment in our Connected Financial Institution whitepaper series, we discussed how aging back office systems, operational effectiveness and open source adoption are driving legacy modernization initiatives across the financial services industry. But the story doesn’t stop there. Modernizing legacy systems is only the first step in addressing the business imperatives faced by financial institutions.
The second white paper in the series discusses how firms can unlock, aggregate and share data across the enterprise to address data management shortcomings. Data management initiatives are being driven by three key challenges: the ever-evolving regulatory compliance landscape, deepening customer relationships with a 360 degree view, and improving data driven decision making a/k/a big data.
An Ever Evolving Regulatory Compliance Landscape
It’s difficult for technology teams to keep up with an ever evolving and more stringent regulatory compliance landscape placing increased reporting and risk oversight demands on financial services firms around the globe. However, the data required to support regulatory reporting is often siloed in legacy back office systems and line of business-centric databases, using disparate data definitions and technologies. The process of extracting, aggregating, standardizing and reconciling data for compliance purposes increases the risk of poor data quality and inaccurate reporting, which can spell trouble for financial institutions.
Deepening Customer Relationships with a 360 Degree View
A single, 360-degree, tailored view of the customer is critical so that sales, service and marketing staff have contextually relevant information when they interact with clients to improve the customer experience. But financial institutions have struggled for years with combining information about products, usage patterns, customer service interactions, demographics, and relationships. As financial institutions invest in modern sales force automation and customer relationship management systems to achieve a holistic view of their clients, they need to solve the problem of combining data from traditional sources on-premises with new attitudinal and behavioral data derived from external sources such as social media .
Improving Data Driven Decision Making
Analytics and business intelligence have always been critical in financial services. But those firms are now facing a flood of information arising from compliance initiatives, customer centric projects and non-traditional social media channels. In the era of “big data, its not enough to create a massive data warehouse with every piece of information imaginable. The promise is in “data driven decision making”, defined as “the practice of basing decision on the analysis of data rather than purely on intuition.” In order for analytics projects to be successful, technology teams must break down organizational silos and standardize processes, tools and governance.
To Learn More
Download the whitepaper, “ Unlocking Data to Transform Financial Services ” to learn more about how organizations can address these challenges and create competitive advantage by using integration to modernize existing systems.