Top 3 Reasons Why Banks and Financial Services Should Prioritize Data Governance in Today’s Age

As banks deal with a huge amount of consumer data, including personal & financial information, data governance is a crucial component of the banking sector. The process of overseeing the accessibility, usability, integrity, & security of data utilized by an organization is referred to as data governance. Data governance is crucial in the banking sector to maintain consumer trust, regulatory compliance, and fraud prevention.

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Key Reasons to Use Data Governance in Banks and Financial Services

• Regulatory Compliance- Regulatory compliance is one of the main justifications for data governance especially in the banking sector. Banks must abide by a number of laws, including the (PCIDSS) Payment Card Industry Data Security Standard and the (GDPR) General Data Protection Regulation. Non-compliance may lead to hefty fines, harm to one’s reputation, and possibly legal action. Data governance is therefore essential to ensuring that banks abide by all applicable laws and standards.
• Fraud Prevention- To stop fraud, data governance again is crucial. Fraudsters frequently target banks in their pursuit of sensitive client data such as account numbers & passwords. By putting in place strong security measures, such as encryption & access controls, along with keeping track of data access and usage, data governance can aid banks in preventing fraud.
• Maintaining Customer Trust- Maintaining client trust is a crucial component of data governance especially in the banking sector. Consumers anticipate that the personal & financial information they provide will be safe and treated with care. When consumer data is not protected, confidence is lost, which may cause customers to do business with other companies. By making sure that the customer data is handled with the highest care and is shielded from illegal access or use, data governance can aid banks in gaining and retaining the trust of their customers.

Bottom Line

In the financial sector, data governance is crucial. It guarantees regulatory observance, averts fraud, and upholds client confidence. In order to manage the accessibility, usability, security, and integrity, of the data they utilize, banks must put in place strong data governance procedures. If you do not, you risk paying hefty fines, losing your reputation, and losing customers.