# Accelerating financial services innovation with the promise of data mesh 
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-11-18
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: The Future of Financial Services: Embracing Data
Meta Description: Discover how financial services can leverage data to innovate, compete, and stay secure in a changing landscape. Learn about the Data Mesh approach.
URL: https://financedigest.com/accelerating-financial-services-innovation-with-the-promise-of-data-meshhtml

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_By **Andy Mott,** EMEA Head of Partner Solutions Architecture and Data Mesh Lead_

The financial services sector is experiencing a major transformational cycle as the effects of COVID-19, increase in regulations, and cybersecurity risks take their toll. To embrace these challenges, accelerate innovation, and compete in a crowded marketplace, financial services must move rapidly, ensuring they are gathering the right insights from their data. A recent survey from IDC found that [55%](https://www.ibm.com/downloads/cas/E4BWZ1PY) of financial service institutions want better data efforts in identifying customer-centric objectives, and they certainly have a lot of it, with more data on customers than any other sector. This [trend towards data as the key](https://www.financedigest.com/4-key-financial-trends-as-we-approach-2021.html "4 Key Financial Trends as we Approach 2021") to success was recently outlined by the UK Government’s AI strategy, who emphasised a need to treat ‘data as a strategic asset second only to people’.

Personal [financial data](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") is amongst the most valuable currencies in the digital economy, and to navigate this, you need a data management and analytics strategy that simplifies offerings and drives sustainable, responsible growth.

**Data challenges in [financial services](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud")**

A hyper, important pain point in the [financial services](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") is cybersecurity and safety, as fraud becomes smarter, and more commonplace. The UK experienced in the first six months of 2021 a [71](https://fireflycomms.us2.list-manage.com/track/click?u=aa1cf9ed529741ecac7675fae&id=cf262f8e2a&e=cd03049761)% jump in fraud cases, sparking warning of a national security threat due to the sensitive information involved in financial services. [Financial services must be more efficient and smarter with their data; cybersecurity is incredibly vital](https://www.financedigest.com/financial-services-firms-turn-to-big-data-intelligence-to-fight-fraudulent-activity-according-to-xerox-study.html "FINANCIAL SERVICES FIRMS TURN TO BIG DATA INTELLIGENCE TO FIGHT FRAUDULENT ACTIVITY ACCORDING TO XEROX STUDY"). Choosing a data architecture model that supports these ambitions and [safely](https://www.financedigest.com/your-money-is-safe-but-your-data-might-not-be.html "YOUR MONEY IS SAFE, BUT YOUR DATA MIGHT NOT BE") stores data is imperative to keep up with competitors and modernise your business.

McKinsey recently reported that just [30%](https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/accelerating-analytics-to-navigate-covid-19-and-the-next-normal) of financial service firms align their data and analytics strategy with their overall business goals. Now is the time to update your scalability and agility of data, beyond simply storing it. Financial services need to be driven by [data not only to offer hyper personalisation for consumers](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") but to gather greater insights into how and where customer is spending. As society draws further away from cash, digital [payments can result in engagement and insightful findings which can help drive areas such as investment trends](https://www.financedigest.com/top-5-payment-trends-for-2016.html "TOP 5 PAYMENT TRENDS FOR 2016"). Competition is tight, as big tech giants such as Google, Microsoft and Facebook move to take on [financial services](https://www.financedigest.com/boom-or-bust-how-the-financial-services-sector-is-coping.html " Boom or Bust: how the financial services sector is coping"), although hindered by regulations and intricate financial know-how.

**Data Mesh: the solution for [financial services](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") woes?**

The Data Mesh approach, which focuses in on decentralising data and removing bottlenecks, can answer many of these challenges. [Financial services domain teams can own their data](https://www.financedigest.com/the-financial-sector-must-act-to-tackle-internal-data-security.html "THE FINANCIAL SECTOR MUST ACT TO TACKLE INTERNAL DATA SECURITY") closest to them, treating it as they would a high-quality product. When [data is clearly owned, data owners can delegate this to an expert to oversee the development, management and serving of data, to ensure the data strategies align with organisational](https://www.financedigest.com/auditing-in-cyber-how-organisations-can-keep-track-of-their-data.html "AUDITING IN CYBER: HOW ORGANISATIONS CAN KEEP TRACK OF THEIR DATA") goals . Creating a self-service [data platform supports workflows and removes friction in creating and connecting](https://www.financedigest.com/keeping-data-connected-for-greater-business-value.html "Keeping Data Connected for Greater Business Value") different sets of architecture to ensure efficient and organised analytics; both incredibly important assets to have in financial services. The data mesh strategy requires implementing a set of [rules](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") that applies to all data products within an organisation and makes them interoperable, for flexible decision making.

**[Benefits of data](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") mesh**

A [data mesh approach can help financial services](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") better serve its customers and showcase how innovation and success is enabled via a data-driven strategy. Data Mesh decentralises data management and diminishes the impacts of silos and bottlenecks by giving teams ownership, control, and access to their own data. End users can query and access [data where it lives without having to transport](https://www.financedigest.com/leaders-recognise-the-importance-of-green-transport-at-cop27-but-we-need-data.html "Leaders recognise the importance of green transport at COP27, but we need data") it anywhere, gaining better management and serving abilities. This speedier access directly translates into time to value and greater discoverable insights. By empowering data and product teams, companies can adapt faster to keep up with the market and regulatory changes by removing inefficient blockers of central IT. For [financial services](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies"), this is critical to keep up to date with the changing regulation market and privacy guidelines. Data mesh reduces organisational bottlenecks, simplifying access and removing unnecessary [movement of data](https://www.financedigest.com/10-steps-to-stop-lateral-movement-in-data-breaches.html "10 Steps to Stop Lateral Movement in Data Breaches") across organisational borders, enabling organisations to remain compliant with every changing national regulatory requirements.

With the decline of cash, global [data volumes in the financial services](https://www.financedigest.com/data-fake-will-be-the-new-real-in-financial-services-in-2023.html "Data: Fake will be the new real in financial services in 2023") continues to increase as more and more tracked transactions occur. Data Mesh architecture [closes the gap between these transactions and the process](https://www.financedigest.com/can-digital-labour-displace-cfos-in-the-close-process.html "CAN ‘DIGITAL LABOUR’ DISPLACE CFOS IN THE CLOSE PROCESS?") of analysis with data ownership granted to individual teams, allowing them to make quick, real-time decisions without the need for data transfer.

COVID-19 accelerated the [financial services industry](https://www.financedigest.com/73-of-employees-in-the-banking-and-financial-services-industries-are-looking-for-better-physical-and-mental-wellbeing-support-in-the-workplace.html "73% of employees in the banking and financial services industries are looking for better physical and mental wellbeing support in the workplace") and showcased how fast the industry can, and must, adapt and change. [Moving forward with this quick agility to choose data](https://www.financedigest.com/exclusive-binance-moved-346-million-for-seized-crypto-exchange-bitzlato-data-show.html "Exclusive-Binance moved 6 million for seized crypto exchange Bitzlato, data show") architectures that grant independence and quick access, like Data Mesh, will enable further innovation and success. [Financial services can overcome](https://www.financedigest.com/3-common-financial-hurdles-for-the-self-employed-and-how-to-overcome-them.html "3 Common Financial Hurdles for the Self Employed (And how to Overcome Them)") challenges concerning regulation, safety, and fraud with the use of data management that bypasses organisational bottlenecks and stores data in user-friendly and transparent means. Big [tech has their sights set on financial services](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution "), and not always in the traditional ways. Data mesh will [ensure financial services remain competitive and innovative](https://www.financedigest.com/42-of-retailers-say-payment-over-time-solutions-are-very-important-to-ensuring-future-digital-innovation.html "42% of retailers say payment-over-time solutions are ‘very important’ to ensuring future digital innovation").


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