Regulatory requirements, changing customer expectations, and aging systems have strained many companies' technology infrastructures -- and the employees who use them -- to the breaking point. Financial institutions have responded by creating bolt-on applications that help achieve business and operational goals in the short term. But these short-term solutions have created long-term challenges by compromising the accuracy of information and fragmenting the data landscape. The impact is being felt across the board, not only in finance, but also in the IT department, business units, and ultimately, in the organization's bottom line. Specifically,
· Business units are becoming more disconnected and less efficient and effective
· Employees' productivity is negatively impacted
· Institutions may be unable to respond accurately to reporting requirements
· Potential loss of market share
A growing number of financial institutions recognize the need to develop sustainable infrastructures that address current and future challenges. Many of these institutions are focused largely on the technology involved. But the devil is in the data that flows through the infrastructure. It is essential to resolve infrastructure and data granularity issues from the front office to the back office, embarking on sweeping cross-divisional change initiatives that put data at the top of the transformation agenda.
In order to enable more effective, data-driven decision making, financial institutions should consider the following data management framework:
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