We have grown accustomed to the fact that there are enormous volumes of data filling our computers, networks and our lives. Companies and governments have dedicated enormous resources to collecting and storing data. A study by the Standish Group revealed that, on average, only about 15 -20% of these resources are actually used in direct support of decision making. In reality, only a small amount of the data reposed in these systems will ever be used because, in many cases, the volumes are too large to manage, or the data structures themselves are too complicated to be analyzed effectively.

The need to understand large, complex, information-rich data sets is common to virtually all fields of science. In the business world, corporate and customer data are growing in recognition as strategic assets. The ability to extract useful knowledge hidden in these data and to act on that knowledge is becoming increasingly important in today’s competitive world. The entire process of applying and combining computer based methodologies with new techniques, for discovering knowledge in data is called data mining. Data mining is the iterative process via which new, valuable and non-trivial information is sourced from existing large data sets. Some of the typical challenges addressed by data mining are:

• Data extraction, integration, preparation and reduction for business performance measurement
• Information and machine learning for training business and service applications intelligently
• Statistical and mathematical modeling for analyzing hidden data trends and behaviors
• Predictions and visualizations for understanding how to build strategic and operational planning models

Business Drivers for Banking

The banking landscape is changing quickly. Today's banks face increasing regulatory burdens, new customer demands and competition from both established franchises and emerging players. But extraordinary challenges also provide opportunities to evolve the business. Leading banks are leveraging their information as a integrated strategic asset, to identify new ways to deepen customer relationships, drive revenue growth, support compliance and sustain competitive advantage.

MDM enables Banks to improve customer service

Master data management enables banks to know their customers and be more responsive. MDM enables banks to connect disparate pieces of customer information across departments, branch locations and lines of business, into a single, actionable view. Armed with a complete picture of the customer relationship:

• Consumer banks can ensure a consistent customer experience, whether online, onsite, or by mobile phone
• Commercial lenders can connect clients into meaningful hierarchies, to better identify and manage credit risks
• Wealth management organizations can craft targeted product bundles and promotional offers to meet the needs of priority customer segments
• Financial institutions can support compliance with ‘Know Your Customer’ requirements, anti-money laundering statutes, privacy requirements and other regulations
• Bank holding companies can speed systems rationalization projects after mergers and acquisitions

The Results?

• Master Data Management helps banks boost customer retention, increase assets under management, lower operating costs and reduce compliance risks.
• Manage the elimination of potential credit losses with improved hierarchy management
• Optimize marketing effectiveness by delivering targeted rewards programs and up-sell/cross-sell offers
• Reduce duplicate customer records that result in improved customer service and direct bottom line savings

About The Normandy Group and our Master Data Management offering:

The Normandy Group assists our clients with Master Data Management initiatives that offer complete, proven and powerful MDM capabilities, enabling financial services organizations to create trusted views of information, and elevate the effectiveness of mission-critical business process and applications.