Master Data Management: The key to enhancing data quality in Banking

By Katie Joll

The banking sector has seen dramatic transformations over the last decade, impacting most aspects of key operations.

Challenges for data quality in banking

The banking industry has considerable room to improve data management practices and enjoys the benefits of doing so. Banks are swimming in a sea of data, but it’s often distributed among disparate systems, blurring visibility and impacting data quality.

What is Master Data Management (MDM)?

Master Data Management (MDM) is an information management discipline that helps banks build a centralized data repository. One of the major challenges for banks is that legacy systems keep data separated, inhibiting users from getting a clear, trustworthy picture. Further, data is often inconsistent across different channels and systems, and mishandling can be an issue.

Benefits of MDM in enhancing data quality in banking

There are several benefits to MDM’s single source of truth and data governance practices for the banking industry.  MDM enhances data accuracy, completeness, and consistency across systems and processes, resulting in the overall improvement in data quality.

Implementing MDM in banks

Any Master Data Management program is a large undertaking and needs widespread support across executives and stakeholders in the bank. From the outset, these critical sponsors should be involved with planning and generating widespread buy-in for the project.

Case studies and success stories

MDM is the way of the future for successful data management in the banking and finance sectors. There are already multiple examples of institutions that have successfully implemented MDM and seen positive results for their KPIs. Here are some of those:

Your bank can gain a competitive edge, along with improved risk management, through the implementation of Master Data Management with Semarchy xDM. Rollout of your MDM program generally takes weeks rather than months so that you can realize ROI more quickly. Get started by contacting us here.