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Financial Data Management Solutions
The Financial Services sector of Banks, Insurance companies and Capital Market operators have witnessed four common trends in recent years:
- There has been a massive convergence of services: Banks provide insurance services (there's even a term for it − "bancassurance"), stock broking companies provide banking services and insurance companies float their own mutual funds and provide wealth management services.
- The natural outcome of this convergence trend is that there is aggressive competition for customer loyalty and everyone is competing for the most profitable customers. The customer's choice for banking services is not just between banks; he can choose a stock broker or even an insurance company.
- Every sector of financial services is under the hammer of stringent regulations and compliance guidelines. Bancassurance for example, only recently legalized in the US after the repeal of the Glass-Steagall Act, and is regulated by the Gramm-Leach-Bliley Act.
- All sectors of financial services are globalizing. This is particularly true for developing countries. A bank not only has to conform to local regulations of its home country, but also of the other countries in which it has its operations. And to compound it all, there are even international guidelines like Basel II − an accord for capital adequacy that banks must maintain across different countries for international lending.
Each and every one of these trends has a direct bearing on a company's IT strategy. The convergence of services means that an organization has to deploy multiple applications to cover banking, insurance, capital market and wealth management services. A heterogeneous environment is not only inevitable, it is necessary to compete.
The deployment of Business Intelligence, Data Warehouse, Operations Risk Management and CRM applications for the fight for customer's wallet means massive computations of data coming from different sources and each year this data grows exponentially.
Among data growth concerns are a plethora of regulations. Some, like the Financial Privacy Rule and the Safeguards Rule under the Gramm-Leach-Bliley Act, mandate data security and data integrity. Others, like SOX, mandate long term data retention. Each of the IT systems has to conform to these regulations. Data retention, data security and data auditing are just a few of the data management issues the CEO, CFO, CSO and the CIO need to think about every day. A single breach could result in litigation, loss of corporate reputation and worse, incarceration.
Globalization has been a great boon from economies of scale perspective. For the CIO, in most cases it meant having a Global Single Instance. At one end this meant having to sunset existing local applications and move to a globalized system. At the other end, it meant having to comply with international guidelines. The Global Single Instance, with huge amounts of data, has to maintain data integrity and conformance of global regulations.
Solix solutions provide financial services organizations with the tools to:
- Manage Convergence: When an insurance policy matures, the transaction is closed. Keeping that data in production only slows system performance impacting your ability to effectively manage claims processing. By classifying data based on its business value and leveraging Solix Enterprise Database Archiving to relocate historical and closed transactions to a lower cost storage tier or archive database, you can significantly reduce the amount of data in your application database, improving system performance and ensuring you can manage your business at the speed in which you need to stay competitive.
- Ensure Customer Loyalty: Solix Technologies' centralized metadata management approach allows organizations to install a single solution that leverages metadata from different applications. With integrated enterprise search, IT and end users can access and retrieve customer information that is either in the production system or is archived − whether it's in a transactional system, email, ERP Report or in a Profitability Analysis of a BI system. But in conformance to privacy regulations, non-production data is secured, access controls are enforced and all activity is logged and audited.
- Ensure Regulatory Compliance: Ensure sensitive data remains protected against the largest security threat: internal resources. The Solix Enterprise Data Management Suite allows financial services companies to identify data that meets specific data security and retention requirements and automate how data is protected and managed throughout its entire lifecycle.
- Support Globalization: Our centralized metadata approach enables a services-led engagement for sunsetting applications and migrating data to new systems. In addition, our solutions allow enterprises to deploy tiered storage with Solix Enterprise Database Archiving, and significantly reduce the size of the entire application environment with the Solix EDMS Test Data Management solution while ensuring sensitive data remains secure.