Banking is data - Master Data Management - Optimizing business processes with an MDM system

The overall IT architecture of a bank is complex, and the data comes from many sources and is processed by very different departments.

If the process of data management is not managed effectively, it can lead to redundant and even incorrect information. In this environment, it is crucial to establish processes and tools for data management.

What is Master Data?

Master data is all data that is critical to a company's operations. This data is typically shared across the organization, and multiple departments and employees rely on it for decision-making. The types of master data vary depending on the type of organization, but they share some common characteristics:

• Less volatile: Master data generally changes less frequently than other data, but it does change. Data records that never change are rarely classified as master data.
• More complex: Master data typically involves large data sets that are more complex and contain multiple variables, as opposed to simpler entities that could simply be counted or totaled. Master data requires processes to keep information current and accurate.
• Valuable or business-critical: Master data is essential for the daily operation of an organization and for analytical decision-making. Master data is used again and again.

Example for Master Data:

Customer data such as names, phone numbers and addresses are an excellent example of master data. This data changes less frequently, but occasionally needs to be updated when a customer moves or changes their name. Customer data is valuable because it creates a link between the organization and its customers and provides important insights for decision-making.

What is Master Data Management (MDM)?

Master Data Management encompasses the tools and processes an organization uses to create a single source of truth for all of its important data. Through master data management, an organization can disseminate consistent and accurate master data throughout its enterprise. While a data management system collects, organizes, protects and stores all of an organization's data, the goals of master data management include only organizing, centralizing and updating master data. With a master data management system, all of the company's master data is brought together in one central location. This location is referred to as the "single source of truth". Such a system can contain customer, order and financial data, for example, as well as other information.

Advantages of master data management:

With the capabilities of master data management, an organization can improve the quality of its master data, resulting in fewer errors and redundancies. Some advantages of master data management are:

• Increased efficiency: With all of an organization's most important data up to date in a shared location, information islands can be eliminated and collaboration improved.
• Build trust in the data: With reduced silos, business-critical data can be centrally managed and maintained.
• Save resources: With automated and streamlined data processes, an organization can save time in maintaining infrastructure activities.
• Offer more value: With all important data in one place, key insights can be used to provide a personalized customer experience.

Examples of the use of master data management:

Many companies use master data management to organize, centralize, update and distribute product information. If a bank is lending money in the form of a loan, it is critical that each bank advisor has access to a single, accurate source of information for these products. A master data management solution monitors and supports the creation, reading, updating and deletion cycle of this data.

• Create: When a new product is purchased, acquired or manufactured, this product information is added to the company's master data, and a master data management solution optimizes and automates this process.
• Read: People across the organization need access to product information - from manufacturing to sales departments - and a master data management solution helps ensure that everyone has this information. The solution can also be the source of product information for a company's website or order processing system.
• Update: When a product goes through changes, be it packaging, pricing, materials, etc., a master data management solution makes it easier to make these updates and propagate the changes throughout the organization.
• Delete: When a product is replaced or no longer available, a master data management solution provides the tools to delete the product information from the record.

Expand the data management capabilities in your organization:

As an organization grows and the number of people who need access to the same data increases, master data management becomes essential to provide a single point of reference for important information. However, master data is not the only type of data that needs to be cleansed, organized and distributed. Make sure your organization invests in data management solutions that increase visibility, reliability, security and scalability and improve data-driven decision making. In view of the technical content presented, CURENTIS works on consulting and conceptual solutions and actively supports customers in this complex subject area.