How to Break Through Data Silos in Banking with Automated Transaction Monitoring
Understanding Data Silos in Banking
These silos occur when crucial information is confined to specific systems, departments, or processes, creating inefficiencies that hinder compliance efforts. For banks and financial institutions, this problem is particularly acute when managing regulatory compliance and transaction monitoring. Client data, including identifiable and contextual insights, is often disconnected from transaction data, making compliance workflows cumbersome and error-prone.
Why Data Silos are Problematic for Compliance in Banking
- Disrupt workflow efficiency: Compliance officers face inefficiencies when switching between multiple systems to access necessary data. For instance, combining transaction data with Know Your Customer (KYC) information can involve numerous manual processes
- Increase the risk of noncompliance: Siloed data makes it harder to meet the increasing demands of regulatory requirements, exposing institutions to penalties
- Hamper operational insight: Siloed systems prevent decision-makers from accessing a holistic view of data, slowing the ability to detect fraud or suspicious activities
- Undermine data governance: Inaccessible data complicates governance efforts, a critical factor as regulators impose stricter requirements
Data Silo Examples in Banking
- Client onboarding vs. transaction monitoring systems: Data gathered during the onboarding process often exists in a separate platform from transaction monitoring, creating gaps in compliance oversight
- Geographically dispersed data centers: For global banks, data often resides in different regions due to regulatory or technical constraints, leading to fragmented access
- Legacy IT infrastructure: Outdated systems that store data in incompatible formats make integration with modern compliance tools difficult
Breaking Through Data Silos with Fenergo's Automated Transaction Monitoring
Fenergo’s Client Lifecycle Management (CLM) and automated transaction monitoring solutions provide financial institutions with the tools to eliminate data silos and enhance compliance. Our solutions focus on:
- Centralized data aggregation: Fenergo’s platform integrates data from across your institution into a unified, accessible repository
- Real-time compliance monitoring: Our automated monitoring solutions continuously analyze transactions while seamlessly pulling in customer data, reducing the manual workload for compliance teams
- Interoperability across systems: Fenergo’s technology bridges the gap between legacy systems and modern platforms, ensuring smooth data flow and operational synergy
- Streamlined KYC and AML processes: By connecting KYC data with transaction monitoring, Fenergo helps compliance officers build a complete picture of customer activity, ensuring quick and accurate decision-making
Steps to Achieve Silo-Free Compliance with Fenergo
- Audit Your data environment: Work with Fenergo experts to identify silos and evaluate their impact on compliance operations
- Deploy Fenergo’s unified platform: Integrate our CLM solution to unify data across systems and eliminate redundancies
- Leverage advanced automation: Utilize Fenergo’s automated transaction monitoring tools to enable real-time analysis and detection
- Ensure scalability: Implement solutions that adapt to your institution's growth, regulatory changes, and technological advancements
- Ongoing support and optimization: Benefit from Fenergo’s continued support to ensure your systems remain efficient and compliant
Breaking through data silos is essential for modern banking compliance. With Fenergo’s automated transaction monitoring and client lifecycle management solutions, financial institutions can streamline operations, reduce compliance risks, and build a data-driven approach to governance. Transform your compliance processes today with Fenergo by requesting a demo.
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How to Break Through Data Silos with Automated Transaction Monitoring
A data silo is a collection of data that’s either inaccessible or difficult to access by other groups within an organization. This is a real problem when handling compliance. Customer data, including identifiable and contextual data, can easily become separated from the transaction data that compliance officers review every day.
Data silos are becoming increasingly problematic as data begins to proliferate and transform every organizational process, making it more difficult for teams to carry out critical functions.
Siloed data is stored in a standalone or isolated system often because it’s incompatible with other datasets. Although the intentions of storing data in this way usually aren’t malicious, it does make it harder for it to be leveraged for the organization’s benefit.
Why are data silos bad for compliance?
Although they may sound harmless, data silos hinder operations and the data analytics processes that support them. Not only do they limit the ability of leaders to use data to manage operations and make informed decisions, but they also prevent operational workers such as compliance officers from accessing relevant information easily that could help them meet their objectives more efficiently.
This is commonly seen when investigating flagged transactions and trying to match customer activity with customer identifiable information obtained during the Know Your Customer (KYC) process. Often this set of data is separated from transactions requiring compliance officers to switch between multiple screens and even multiple platforms to obtain the contextual information they need to make a judgement.
In short, siloed data is unhealthy data. If it cannot easily be accessed and used in a timely manner, it cannot be trusted when it’s eventually released, it isn’t adding any value to operational processes, and it makes data governance more difficult or in some cases impossible—this is something you must be on top of now, at a time when regulatory bodies are introducing new data governance laws and severe penalties for noncompliance.