The significant growth of banking frauds, fueled by various reasons like underground inconsistent systems with almost no governance, economy of malware raised the need for effective and well governed ecosystem and well integrated systems.
Our financial institutions have been facing constant assault by well-funded agile criminals. Most of the time these frauds go unrecorded and untraced. For example, Indian banks have reported 8,670 loan-fraud cases involving rupees 61,260 crore over the past five years.
Have we thought why this does happen, it’s because the problem is at the core.
The problem is we do not have control on our data, process and governance. We have systems developed for generations and are not integrated for a 360 degree view and insights into various secure and unsecure lending for customers against all the products across geographies.
With this problem in hand we need to build robust systems with complete tractability and transparency from a data and governance perspective.
The disparate systems built over a period of time remain disparate, there is no integration between the various department data. Disparate systems provide inadequate defence against the multidimensional attack, due to lack of complete insight into the identity of the customers.
Banks and other financial institutions need to understand the importance of investing in technology to make their systems more secure rather than Managing the total cost of fraud.
To fulfill the dreams to bring about a secure digital transformation they need to be insight driven and before they are insight driven they need to be data driven, there is a need to build a strong, trusted and governed Information Architecture.
Analytical data typically comes from many different data sources across the enterprise and typically passes through a series of transformation before it becomes a trusted information. To derive further Insight into Customer behaviour and interest it’s required to extract and integrate insights from Big Data into our traditional environment. This necessitates a mature information governance and data quality practice. This will not only provide an Insight into the Customer changing interest for up sell but also be able to find clues in case of mistaken identity and rapidly evolving criminal behavior.
The following are the essential elements you need on your journey to the transformation:
- You need data: This means building a 360 degree view of your customer data. You will not only gather your internal data but also need to include the external sources such as social media data, click stream data, census or other relevant data. It’s also important to know “Who is who” and “Who knows whom”
- You need to govern your data: To derive value from your data you need to govern your data, ensure that the data is secure and adheres to the compliance regulations. Build a trusted environment where data is easily accessible yet secure.
- Once you have the right data ready, you can derive the Insights and Intelligence from your data. This means having the right skills and tools in place that can surface these insights, also the technology can learn from the data and get accurate each time data is Analyzed.
IBM Unified Governance is a framework surrounding the structured and unstructured data focused on discovery, classification and management of information to meet the governance for compliance and governance for Insights.
To fight against the multiple crimes no single Analytics solution is sufficient but IBM has a set of tools to build a secure solution for a banking system.
Right from getting the data from disparate source system, ensuring data quality standards, building a 360 deg view of the customer, governing the structured and unstructured data across the enterprise.
The best in class technology as part of the IBM Analytics Solution helps solve problems at all levels
InfoSphere Information Analyzer
Information Governance catalogue
Master Data Management
An integrated solution built using the above mentioned tools is a step towards
- Building a Unified Governance across different units of the bank.
- Empowering the Line of Business User
- Ensuring Compliance to government regulations
- Improve User experience
- Modernizing our banking systems
- Being open and extensible
- Infusing Machine Learning into the governance and integration process.