The financial services landscape has changed significantly in recent years, creating a level playing field for new fintechs and superapps who are changing the game, alongside large enterprise banks.
The need to harness data, drive business growth and strategy through data intelligence has fast become an area of focus and investment, spurred by three main drivers:
These factors are driving decisions on how investments are being prioritized and how organizations are building their data roadmaps. Alongside, however, large organizations are also struggling with the need to modernize their data estate and continue to meet enterprise reporting and compliance requirements.
The reality of having to meet the data needs of diverse stakeholders such as digital business heads, ecosystem collaborators, finance and compliance teams, operations and governance teams requires a balancing act of investing in a roadmap which meets a combination of offensive and defensive data strategies. We have identified a set of ‘data narratives’ and their relevance to data strategy and to stakeholders, as showcased in Figure 1. A ‘data narrative’ as defined by Thoughtworks are the specific areas within data that an organization has identified as the area(s) of investment. In Southeast Asia, organizations in the FSI sector are primarily focused on eight data narratives as they strive to extract the maximum value from their data and alongside continue to modernize their data estate.
Fig. 1 Highlighted data narratives seen in focus in financial services in Southeast Asia
Organizational choices on balancing offensive and defensive data strategies and correspondingly the data narratives they will invest in, is also impacted by the history of the institution and the environment they operate in. Some of the key factors which has influenced organisational background of financial institutions in Southeast Asia are:
To cater to the many layers of complexity in becoming a data-driven financial institution - balancing a data strategy to meet stakeholder needs, recognizing specific organizational challenges and changes needed and applying data platform technology successfully, there is a need to have a blueprint that helps define this path. A blueprint for data-driven enterprises should help organizations take a structured approach driven by agile thinking and value-driven use cases and delivered by modern data engineering.
Our blueprint for data driven financial enterprises comprises of the above six aspects of data management and data value realisation -
The phased or accelerated adoption of this blueprint will guide the speed of data-driven transformation. We are seeing data and digital initiatives as the two cornerstones of financial services transformation and a data-driven financial enterprise will not only drive business growth but also prepare organizations to be adaptive to changing business needs.
Data Mesh, Monetization, Innovation, Open Banking - the data landscape has gotten murky with many leaders focusing on defining the best data strategy and approach for their business. Watch this recorded webinar to learn more about the approaches, challenges, use cases, considerations that can help businesses maximize the value of their data.