Managing Risk & Compliance in the Age of Data Democratization
Data privacy and compliance, particularly around financial data, are key trends. Indeed, more governments across the globe are looking at ways to protect consumer and financial data, to ensure that information does not get into the wrong hands and is not used inappropriately. Banks and financial services have two business imperatives: Comply with a growing list of regulatory measures aimed at preventing financial crime and pursue growth opportunities in a highly competitive market.
With every interaction, these organizations strive to increase customer lifetime value by providing a more personalized customer experience while doing everything they can to make sure the data is used for its intended purpose.
Here we describe a new approach to achieve the goal of making the data accessible within the organization while ensuring that proper governance is in place for these types of regulations.
Two Sides of the Data Story
Because compliance and growth are often seen as competing imperatives, they represent two sides of the same data story based largely on how people typically work with the data.
Data producers: Owners and operators of the systems where data is created within the organization. These systems may include CRMs, financial billing systems, IoT systems that feed into the organization from external sources such as social streams and devices. Data producers have curation, security, and ownership responsibilities for the various pieces of information that enable business operations.
Data consumers: Business users who access the data generated by data producers. As owners of analytic projects, they need data for their analyses such as understanding relationships and patterns within the data. An example would be visualizing a graph of customer interactions to understand what customer journey drives additional business opportunities and value.
According to a recent Experian report describing the Top 10 Data Management Trends for 2020, 77% of organizations are actively working to put data insights into the hands of more people across the business. We have now entered the age of data democratization, which makes digital information accessible
to the average non-technical user of information systems (data consumers), without requiring the involvement of IT (data producers). Organizations are increasingly concerned with how data gets used, which works against the idea of democratizing the data. Having a proper data governance process, particularly one that is flexible, is crucial to the success of any kind of data democratization process. Read more…