Data Governance: How Can It Be a Crucial Enabler for Managing Data Risks?
In July 2021, one of the world’s leading banks revealed a loss of $5.5 billion due to a default by one of its customers. The bank identified the “failure of management and controls” in its investment banking arm as the fundamental cause of this loss. This incident reinforces the importance of a robust governance framework for managing data risks – driven by the right combination of people, processes, and data within the banking industry.
Technological advancements have created expectations for on-demand banking that are typical of banks’ sustainable growth. By adopting digital banking solutions such as mobile, internet banking, kiosks, and WhatsApp, it has become easy to service customers on the go. A typical bank offers services through 70-100 channels. Banks can also harness the insights obtained from big data generated from the interaction of customers with multiple channels.