Improving operational efficiencies, strengthening risk management capabilities, boosting sales effectiveness and strengthening competitive standing—these are essential priorities for financial services firms. Need a strategy that covers each of these concerns? Tapping party data may be your answer. Accenture’s report, Party Data Management in the Digital Age, takes a look at the trends and possibilities around party data.
Since 2008’s financial crisis, the role of party data—information about any entity that interacts with a bank—has shifted from the back office to become a fundamental component of an organization’s "fitness." Its rise in prominence can be traced to its ability to bolster these three performance areas for banks:
- Client experience and sales effectiveness: Party data helps create a cross-enterprise view of the client and can support cross-selling opportunities.
- Operational efficiencies: Effectively capturing party data can deliver consistent data quality and governance as data winds its way throughout a variety of business groups and operations.
- Regulatory requirements: Well-mined party data can help firms meet a myriad of requirements around knowing customers, including newer regulations such as the Qualified Financial Contracts (QFC) Recordkeeping Final Rule or the Single-Counterparty Credit Limits (SCCL) Form.
Party data capability model
Party data can bring much to the table for financial firms, but the key is managing the data effectively. Financial firms face a variety of challenges, including:
- Too much reliance on vendor data accuracy
- A variety of systematic and operational challenges, notably that often the functions generating data (say, sales) are not the same as those ultimately tasked with mastering the data
- Data maintenance processes that continuously and reliably refresh data
Any changes to party data processes can reverberate throughout a financial organization, from relationship management to Know Your Customer (KYC) to regulatory risk.
Choosing the right party data approach, then, is critical. Complicating matters: Data management is not a static process. Any approach should be fluid and forward thinking.
With these challenges in mind, Accenture has developed a party data capability model that illustrates the essential features of a party data infrastructure and operations model. Merging two models—a mature "business as usual" approach combined with an emerging innovation model—financial firms can meet their party data needs today while also becoming nimble and future-ready.
A united approach
Bringing together current and future needs means balancing a variety of priorities.
Elements of a mature, business as usual model can include:
- A centralized "data gather" platform
- An enterprise-wide Master Data Management solution
- Cognitive search functions integrated into the Customer Relationship Management process
- An enterprise-wide governance model
- A plan for identifying priority data to triage, when needed, rapidly
These elements should provide effective data management across a financial enterprise. But what about future needs? That’s where an emerging innovation model comes in. It can include:
- A dark data extraction capability
- A cross-enterprise, cognitive search function
- A framework for overseeing vendor data across the enterprise
A strong party data model lets financial firms empower their teams to focus on growing sales and revenue, offering more extensive client coverage and support. The gains can be tremendous.
Contact us to learn more about Accenture’s party data management model.