In the fast-paced world of financial services, data has always been likened to the oil that powers the engine of every institution. However, the advent of new technologies and tools, coupled with the increasing realization of data's untapped potential, has propelled data to the forefront of transformation in the industry.
During an interview at Temenos Community Forum, industry experts — Sriraman Ganesan, Executive Vice President, Global Head of Product Engineering at Temenos and Ashish Arondekar, Vice President, Head - HCLTech Temenos Business — explored how the use of data has evolved in financial services, the importance of ensuring data quality and the strategic partnership between HCLTech and Temenos.
The evolution of data
Traditionally, data in financial services was primarily used for producing reports. However, with technology advancements, especially in artificial intelligence (AI), the focus has shifted toward extracting valuable insights from data.
According to Arondekar, this realization, driven in part by the advent of AI, has led to the rise of the Chief Data Officer within banks, highlighting the significance of data ownership and lineage in maximizing the potential of data.
“Through multiple channels, data has enabled banks to really know their customers. And at the same time, to really know your bank, you need to look at data. Data has reinvented itself in the modern world,” added Sriraman.
Ensuring data quality
One of the biggest challenges for financial services organizations is ensuring data quality. This challenge is particularly pronounced for institutions that hold data for extended periods, which may accumulate inconsistencies and inaccuracies over time.
Organizations must adopt an ongoing and self-correcting approach to data quality management to drive meaningful insights and maintain regulatory compliance, which is crucial in the financial services industry. “This approach includes data lineage, compliance with data protection regulations and the validity of data inputs,” said Sriraman.
“Ensuring data quality is a massive exercise, and partners like Temenos can give banks the tools [such as its Data Hub] to help self-correct,” added Arondekar.
Integrating banking platforms for maximum impact
The transformation of core banking systems requires seamless integration of various platforms. However, performing what Arondekar calls “open heart surgeries” on live systems presents a significant challenge, as these systems cannot be shut down even for a few seconds without severe repercussions.
To navigate this challenge, a parallel approach to driving a data strategy must be adopted, aligning with ongoing transformation programs.
According to Sriraman, the integration of advanced banking platforms in large enterprises will eventually see the aggregation and analysis of data from “multiple source systems”, enabling the generation of valuable and “powerful” insights.
“We don’t absolutely understand where the market is going to go. But we are continuously learning, and we understand that this is what the market expects,” he added.
Democratizing data consumption
In the era of diverse data sources, financial institutions, particularly larger banks, must adopt a democratized approach to data consumption.
“Legacy systems, unstructured data and disparate sources necessitate a democratic and comprehensive approach to integrating and consuming data,” said Arondekar.
This democratization allows for better decision-making, improved customer experiences and the derivation of valuable insights to drive sustainable growth.
Partnering for success: HCLTech and Temenos
The partnership between HCLTech and Temenos plays a critical role in addressing the evolving data needs of financial institutions. Built on trust and transparency, the alliance focuses on understanding client requirements, providing viable solutions and delivering consistent results.
By combining our respective expertise and capabilities around services and products, HCLTech and Temenos enable financial institutions to enhance their data-related capabilities and drive sustainable transformations within the industry.
“A partnership works beyond the contract and is based on trust and honesty,” said Arondekar.
Sriraman added: “We have worked with HCLTech on successful projects across the globe and we look forward to continuing to do so.”
Looking ahead, this type of strategic partnership is fundamental in ensuring data quality and integrating advanced banking platforms have become integral components of success in the industry. Collaborative efforts are key to revolutionizing data-driven strategies within financial services, empowering institutions to unlock the true power of data and drive sustainable growth.
