Transaction logs, phone call recordings, email exchanges, earnings transcripts, financial filings, etc. are all examples of important unstructured data in the finance industry. Management and analysis of this data is essential to a financial organization’s success.
In order to unlock the value of this data, IT teams at finance organizations should be managing data in the best storage options for them. Doing so allows them to anticipate customer behaviors and create strategies to bring more value back to the business.
However, moving data accordingly is no simple task. Anytime unstructured data is transferred from one storage platform to another, on-premises or in the cloud, there is risk involved. There is room for mistakes if the proper precautions are not taken by the team moving the data. Human or machine errors or malicious attacks can occur as data is being transferred over, affecting the overall integrity of data. This can result in severe non-compliance penalties and extended downtime.
Finding the right solution to manage financial data
Choosing the right company and product to undertake the management of your unstructured data is pivotal and can be the difference between success or failure in springboarding your company into this data-driven digital world. When choosing a data management partner, it’s important to pick a company committed to putting data integrity and safety at the forefront.
Reviews from a neutral-third party vendor is an important factor to check for when partnering with a data management software. Companies such as KPMG, Deloitte, and PwC all have established protocols to verify whether or not an organization’s products measure up to the standard for data safety for financial institutions. Below is a list of qualities these third-party organizations examine and what your organization should be looking out for:
1. Training and support
Without an understanding of how to work with the data management software your financial institution is implementing, there is more room for error. Evaluate what your overall data management goals are, and where common mistakes can happen before beginning any project. Look into whether the software you are choosing offers step-by-step training or has a knowledge base to share with your team before beginning. Your team will be glad you did.
2. Up-to-date, accurate software
It is important that financial data is protected at the highest level throughout the data management process. After all, you want it to be safe and secure in the long-term. Research that the software a vendor is offering has been reviewed and tested for accuracy. You may want to check on the prospective business’ practices to see how often they update their software and if they put their products through a review or automated testing trial period. Does the company release their product updates frequently, and do they offer guidance on how they address reported product deficiencies or incompatibilities.
3. Quality assurance
Independent quality assurance (IQA) is a feature that can save finance organizations money, time, and energy. In the event of a system incompatibility or a bug, IQA can apply a solution to mitigate consequences in real-time. Another positive of IQA is that having this feature at your team’s disposal means you can perform an analysis to see what went wrong and why the bug occurred to accurately reflect any necessary test, process, or architectural changes.
4. Overall data security
When you move your financial organization’s data, there will likely be an assortment of types of files that vary in size, composition, and year of creation. This vast array of confidential information, such as all of an individual’s account information, can be complex as the many different files must be shared and exported between systems. Without the right system or set up in place, the security settings can be lost and create holes in defenses for adversaries to take advantage of. Since all data for financial institutions is regulated, these sensitive data management processes could be a target for cyber criminals as they know there are higher stakes in this industry. Do your due diligence to learn about what security infrastructure is in place in the software you choose up front in order to avoid catastrophe later.
Enterprises must undergo digital transformation to not only survive in today’s digital world but to monetize their organization’s mountains of unstructured data. Financial organizations who manage their valuable data assets smartly and securely have the most potential to be a critical step closer to thriving in the competitive market chaos. Those who shortcut the protection of their valuable data assets during a data management project are at perilous risk of compromising or delaying their company’s potential success.