Banks must focus on breaking down their data management strategies to a quarterly basis, said the chief data officer, risk and finance at ING Bank on a panel at the Financial Information Management conference in London this week.
“If you make a plan for [data] you think, ‘yes we can do that in a year, two years, or three years,’ but you never get everything done. So, what we now do is make small steps,” said ING’s Ronald Oudendijk.
“Last week I had to present a plan for the whole data solution and financial risks of it for 2020. We made a plan for two quarters and then after the two quarters we will see what will happen because it is so dynamic and it is changing that often,” he said. “And also don’t promise regulators that you do it in a year or two years’ time.”
While the retail banking sector is facing increased cost pressures, Jo Coutuer, chief data officer at BNP Paribas said it was important for the bank to continue moving forward with its digital transformation and begin to change from defensive structuring to offensive value creation.
“I think the timing is quite right because we have been able to spend the last three years when finances were good in getting this to a stable plateau where the basics have been fixed or the guidelines to continue to fix the basics have been fixed,” he said.
“It is exactly the right timing when we have come under cost pressures to make sure that we don’t get stuck in bureaucracy but that we move to the offensive side, the opportunity creation, think about monetisation how to do that decently and that is really going to be the next steps.”
Also on the panel, Elaine Priest, chief data officer at RBS said the bank had been on a seven year digital transformation journey, and is working to move to the next stage of digital maturity.
“It started off originally with our policy and building that out, and we’ve also got a [data] lake in and analytic pieces associated to that. That is maturity level one, what we need to do now is to make it to a different level of maturity and this is where we think the world of creating a map that is digestible by all, but also has guardrails.
“There is an element of retooling associated to the move from maturity level one to maturity level two. There is a lot of technology out there and I think it is about making careful choices, about what you want to bring into your eco-system and how well they’ll work together.”
As part of the transformation, Priest said it was important to train the bank’s employees on effective data usage.
“A large part of what our focus has been is not just capability from the data organisation, but a capability across that wider organisation so that everyone in the bank understands how they can use the data in a different sort of way.”