Data plays an important role in enabling the financial and banking industry to comply with regulations. Hence, it is imperative to have a proper data governance to ensure the accuracy and quality of data.
However, most banks in the Philippines are still in the initial stages of having a data governance model, said Praveen Kumar, General Manager of ASG Technologies in Asia Pacific. "[Banks are still] in the preliminary stage because most of them have just deployed a core banking solution or are in the process of deploying one. Data is very decentralised and uncontrolled [while] the regulators are just tightening the laws slowly but steadily. That's why data governance has not been a very big topic so far," Kumar explained in an interview with BankIT Asia.
He noted that developing a data governance model involves three processes: creating a business glossary, building data lineage as part of metadata, and assigning a data owner.
Since the definition of some words varies from one department to another, Kumar underscored the importance of specifically defining each data element. For example, the loan department in a bank may define 'risk' as the capability of a borrower to pay his/her loan. However, 'risk' in the bank's investment department may refer to the extent in which the person is willing to invest, Kumar said.
As such, Kumar said it is important to have a business glossary. "In the bank, you need [something like] a Wikipedia because there are so many terms and you have to remember those terms in the business glossary.