Master Data Management (MDM) has a lot of common considerations regardless of the industry where MDM will be blueprinted and implemented and then there are some key aspects to consider specifically for a given industry.
A recent blog post here on the blog examined the specialties of doing Master Data Management (MDM) in the manufacturing sector. The post was called 4 Key Aspects of Master Data Management in Manufacturing.
In this post two specialties of doing MDM in the financial service sector will be examined. These are:
- The impact of regulations
- Data domains in focus
The Impact of Regulations
Doing business in the financial service sector is heavily impacted by the various regulations enforced by authorities across the globe. These regulations aim at improving market confidence, financial stability, and consumer protection and stretch across concepts as Know Your Customer (KYC), Anti Money Laundering (AML) and many more. Doing data management in the financial service sector revolves a lot around adhering to these regulations and the embedded concepts.
When implementing a Master Data Management (MDM) solution in the financial sector you will need a broad set of capabilities that both cover the traditional goals of managing master data as for example getting a Single Customer View (SCV) and then also the specifics of what is entailed in and demanded for Knowing Your Customer (KYC).
Data Domains in Focus
In master data management we often focus on three major data domains: Customer master data, supplier master data and product master data. These domains are also relevant for master data management in financial services however often with some other meaning, naming, and additions.
The customer is king in any business. In financial services a customer is though more often being regarded as one of several different party roles that are involved in business processes. The customer in various roles is one of more counterparties being involved in transactions taking place. Therefore, we for example see the party domain being more naturally accepted by business stakeholders in the financial service sectors than we until now see in other industries.
From Master Data Management to Data Hub Strategy
The requirements for master data management in the financial service sector will quite early in the journey lead to that solutions must be able to encompass Extended Master Data Management. This can also be seen as a data hub strategy where data quality and data governance play a crucial role.
You can learn more about these considerations in a webinar co-hosted by Semarchy with participants from Sumitomo, HSBC and Bloomberg discussing How to establish data quality and data governance for analytics in financial services.