As the industry is inundated with data management issues, putting effective internal governance policies and complying with global reporting obligations, have jumped to the top of banks’ agendas. Christopher Butler, chief data officer for Asia-Pacific International Markets at HSBC, explained how it is necessary for financial institutions to have consistent data governance frameworks across all parts of their business. This includes taking into account how data is captured, who owns the data, who has access to it, and measuring data quality consistently.
Although banks worldwide are mandated to comply with the Basel Committee on Banking Supervision (BCBS) regulations—such as BCBS 239, which stipulates principles for effective risk data aggregation and risk reporting—Butler said that the industry should take a step further in terms of improving global data governance.
Part of the challenge that banks have is that we have lots of data pools, but if you don’t tag that data and index it, how do you find it again?
Chuck Teixeira
“We must continue to be broader and have [consistent] governance definitions across all data aspects,” he explained. “Especially for an organization like HSBC, it is impossible to consolidate and use the data from Bangladesh to Argentina to Ukraine if we don’t have that. So in terms of governance, ownership, definitions, and consolidation, it is critical across all operations.”
Speaking on a data governance panel at this year’s Asia Pacific Financial Information Conference (Apfic) in Hong Kong, Butler outlined parts of how the bank is building out its data lineage program, enabling it to have a granular view of its data across the entire organization. According to Butler, the bank can dig down into the data, extract important elements, and identify aspects such as the owner of the data.
“We can break the data elements into customers, corporations and individuals, or non-organizations,” he added. “We are able to use that framework to put an owner against it.”
Earlier this year, WatersTechnology also spoke to Chuck Teixeira, chief administrative officer and head of transformation at HSBC, about the organization’s global data transformation project where it is using machine-learning techniques to measure the quality of its data across five different dimensions—accuracy, completeness, uniqueness, validity, and consistency—and uses granular details to link correlated data. Teixeira outlined how the bank is using artificial intelligence to index and tag data from trillions of transactions and external resources to build a reusable gold source of data.
“Part of the challenge that banks have is that we have lots of data pools, but … if you don’t tag that data and index it, how do you find it again? So that is part of what we have built, a reusable data asset. And this has been a significant undertaking over the last year,” says Teixeira.
The bank is now shifting its data to a cloud-based data lake where it can leverage the environment’s scalability, accelerate operational processes, and develop new capabilities, such as a client intelligence utility, which is part of a wider client services project called Phoenix.
Further reading
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Putting the ‘A’ in CDO: The rise of the chief data and analytics officer
As data and analytics become more intertwined, banks and vendors are creating a new role—the chief data and analytics officer—to help them take advantage of the opportunities it presents. It may sound easy, but rethinking data can be a gargantuan task.
The IMD Wrap: Talk about ‘live’ data, NAFIS 2024 is here
This year’s North American Financial Information Summit takes place this week, with an expanded agenda. Max highlights some of the must-attend sessions and new topics. But first, a history lesson...
Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
Frank Tarsillo, CTO at S&P Global Market Intelligence, joins the podcast to discuss the firm’s approach to AI, the importance of data, and what might be in store for datacenters in the coming years.
Breaking out of the cells: banks’ long goodbye to spreadsheets
Dealers are cutting back on their use of Excel amid tighter regulation and risk concerns.
BMO’s cloud migration strategy eases AI adoption
The Canadian bank is embracing a more digital future as its cloud strategy makes gains and it looks to both traditional machine learning and generative AI for further augmentation.
Waters Wrap: GenAI and rising tides
As banks, asset managers, and vendors ratchet up generative AI experiments and rollouts, Anthony explains why collaboration between business and tech teams is crucial.
People Moves: NorQuant, Tradition, Duco, HKEx, SimCorp, Hazeltree, Xceptor, Broadridge, and more
A look at the past month’s people moves in the capital markets technology and data space.
Northern Trust building internal cloud data ‘marketplace’
Using a mix of in-house expertise and third-party technologies, the firm has constructed a cloud-based data mesh that gives internal staff access to proprietary datasets and analytical tools to deliver greater insights into client activity.
Most read
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- DTCC urges affirmation focus ahead of T+1 move