The Importance of Data Quality in Banking and Finance
22 Oct, 2020 | IDS
What is Data Quality in Financial Services?
Data quality is a key measure of business success for all organizations, particularly those within the financial services sector.
Ensuring you are utilizing, capturing, and storing the highest quality data for financial services is an issue for both regulatory requirements as well as to gain relevant insights.
The importance of consistent data quality is also fundamental for organizations on their path to data-driven evolution. When data is properly organized and defined, business stakeholders can leverage that information to improve customer experience through customized marketing.
The Importance of Technology in Data Quality
Emerging technology is also improving the importance of data and its attribute. There is immense potential for technologies such as artificial intelligence but success with these technologies relies strongly on data quality. For instance, machine learning involves large quantities of specific data. The more reliable data a machine learning algorithm has, the faster results will be generated, and the better those results will be.
However, for data to be useful, it has to be of good quality. The better the quality of your results, the greater you can benefit from it. It can also be counterproductive if the information of the financial services sector is of low-quality. There is a possibility of making the wrong choice if they base their decision on poor results.
Benefits of Data Quality in the Financial Services Industry
High-quality data provides the financial services industry with numerous tangible advantages. Some of the possible importance of the quality of good data include:
Enhanced data quality contributes to increased decision-making in a financial institution. The more good quality data you have, the greater the certainty you will have in your choices. Good data eliminates risk and can lead to consistent results improvements.
Easier Data Execution
Getting reliable data at your disposal also improves the productivity of a financial sector. Suppose the information is not consistent or complete. In that case, most financial sector results in a situation where they have to spend a considerable amount of time repairing their information to make it accessible. This takes time away from other operations and suggests that it takes longer to apply the discovery revealed by the organization’s data. Quality data also helps maintain the different departments of the financial organization on the same board so that they can function more closely together.
A financial organization can achieve a comparative edge if there is higher quality data than their competitors or use if they make use of data more successfully than their competitors. Data is one of the major assets that today’s organizations have, as long as it is of good quality. Higher data quality implies that you can find opportunities before your rivals do. With good quality data in finance, organizations can predict the needs of prospects and, therefore, overtake sales competitors. A lack of good data implies that chances are lost and slipping behind the competition.
Improved Customer Relations
High-quality data, which is vital for success in every sector, will also help you strengthen their relationships with customers. Collecting details from customers helps the sector to know them better. Financial sectors can make use of details about your consumers’ interests, preferences, and wants to give them content that relates to them and anticipates their demands. This will assist the financial sectors in establishing close ties with their customers. Adequate data protection also helps prevent an organization from supplying customers with monotonous content, which can be irritating to their customers and damage their credibility.
If you need help, iData is here! You can also check out the Getting Started with Data Quality and Advancing Your Career in Data courses from the iData Quality Academy.