Banks keep pushing the frontier in leveraging Big Data to drive better decisions. Putting all that information – especially consumer data – to work for your organization doesn’t come without risks. That risk can escalate every time your bank takes its data usage to the next level, making it critical to proactively up your data management game.
Just look at recent trends across regulatory consent orders and Matters Requiring Attention (MRAs). You’ll quickly see a noticeable uptick in data-related findings. When we dig deeper, we learn that many of those issues fell in the preventable category – meaning organizations could have avoided the reputational and financial costs associated with remediating those findings, had they taken a more proactive approach.
Keeping a close eye to these issues is simply smart business. You already recognize that data is one of the most valuable assets for a bank – so protecting it is paramount. If you need proof in real dollars of the need for good data management, consider that suspicious activity ransomware-related activity was reported at $590 million for the first half of 2021, far outpacing the total of $416 million for all of 2020.
Together, this points increasingly to the need to build a culture where every employee understands, respects and adheres to their responsibility in managing data appropriately – from initial input all the way through proper destruction. This isn’t a task to delegate to the technology team. It’s integral to everyone’s job because everyone touches and uses some piece of data in nearly every daily work task.
However, it’s important to note that creating a data management culture is not a one-size-fits-all approach, as organizations vary in size, charter and function. What regulators expect of a megabank differs what they expect of a small, community bank, and those agencies are only starting to look at fintechs. In our new white paper, Proactive Data-Related Consent Order Avoidance: Stay Ahead of Three Common Citations, my Spinnaker Consulting Group colleagues and I walk you through what regulators are focusing on within different organizations. You’ll want to download your complimentary copy to gain important tactical insights and more details. Until you do, here’s the punchline for making your data environment as regulator-proof as possible.
Building a robust data management culture takes time and plotting your full roadmap can be daunting. Instead of attempting to do everything right out of the gate, focus on three critical priorities that create a solid data management foundation – and avoid some of the most frequent regulator concerns.
Creating a culture that supports best practices in data management and ensures every employee embraces their role in it should be an enterprise imperative. Researched and written with my colleagues, Spinnaker’s new white paper, Proactive Data-Related Consent Order Avoidance: Stay Ahead of Three Common Citations, synthesizes our hands-on experience at leading financial institutions. We bring unique insights as data scientists, analysts and process managers to offer you proven practices to build a data management culture that protects you and your customers.
Don’t wait for a regulator to find a data-related issue at your bank (and there’s plenty of proof they will). Download this must-read white paper now – and get started on better guarding and using your data.
Cutting-edge technology, coupled with the disruption of COVID-19, has driven significant change in the banking industry this past year. Consumers are now more apt to choose online banking services – a trend that’s been bolstered by the continued ingenuity of the fintech segment. And while customers are keeping banks on their toes with continued demand for new tech, we expect that demand to be accompanied by new policy and regulatory pressure in the next five years.
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The Consumer Financial Protection Bureau (CFPB) recently announced that it’s back to business as usual.
Risk Management & Regulatory Compliance, Change Management, Compliance 2 minute read
The skyrocketing expansion of fintechs delivering inventive products and services is impressive, and it’s only natural that traditional banks want to seize a bit of that action. After all, many of these startups have identified a specific consumer pain point – often something that has long troubled a bank – and applied cutting-edge technology to solve it. Along the way, fintechs are carving out an entirely new market while also expanding their reach to previously unbanked or underbanked consumers.
Risk Management & Regulatory Compliance, Change Management, Governance & Policy 5 minute read
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