# How Data Governance-as-a-Service can transform the financial sector
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-01
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Strong Data Governance in Financial Services: Why It's
Meta Description: Learn why a robust data governance strategy is vital for financial institutions to protect sensitive data, comply with regulations, drive innovation, and gain a
URL: https://financedigest.com/how-data-governance-as-a-service-can-transform-the-financial-sectorhtml

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_![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/375-1736815518845-compressed.jpg)_

_By **Michael Queenan,** Co-Founder and CEO of_ [_Nephos Technologies_](http://nephostechnologies.com)

Strong data governance in financial services is a must. These institutions hold some of the world’s most sensitive and valuable data so it is essential that it is stored and protected properly. A strong data governance strategy allows organisations to understand what data is being held, where it is stored, how to use it, and who can access it. This ensures that data is compliant to regulations, such as GDPR, and that the appropriate [protection is applied to the most sensitive information](https://www.financedigest.com/protecting-your-financial-information-and-identity.html "Protecting your Financial Information and Identity").

However, a good [data governance strategy can offer more than just compliance and data protection](https://www.financedigest.com/4-steps-you-should-be-taking-to-protect-data.html "4 Steps You Should Be Taking To Protect Data"). By ensuring that the policies and standards around [data governance are in place, data quality is improved](https://www.financedigest.com/5-ways-data-integration-solutions-are-helping-financial-organizations-deliver-improved-outcomes.html "5 Ways Data Integration Solutions Are Helping Financial Organizations Deliver Improved Outcomes"), making it easy to access, utilise and trust. It can, therefore, be used to drive [innovation and unlock market insights](https://www.financedigest.com/stretch-marks-treatment-market-insights-new-innovations-research-and-growth-factor-till-2025.html "Stretch Marks Treatment Market Insights, New Innovations, Research and Growth Factor till 2025") as analytics and automation can be applied to the datasets. In the highly competitive and constantly evolving [financial sector](https://www.financedigest.com/iot-for-the-financial-sector.html "IoT for the Financial Sector"), this can drive considerable competitive advantages and allow institutions to stay ahead of the latest trends.

Although the benefits are obvious, many organisations [struggle to implement a successful data](https://www.financedigest.com/banks-struggle-to-harness-big-data.html "BANKS STRUGGLE TO HARNESS BIG DATA") governance strategy. When we surveyed 900 businesses at varying stages of their data governance program rollout, [less than half](https://www.nephostechnologies.com/news/infographic-the-state-of-data-governance/) described their data governance programs as ‘doing ok’, whilst

46 percent admitted that they don’t have the skills or [expertise to properly utilise the tools they have access](https://www.financedigest.com/meet-chris-shalchi-the-man-democratizing-access-to-e-commerce-expertise.html "Meet Chris Shalchi, The Man Democratizing Access To E-Commerce Expertise") to.

Having a dedicated team to oversee the [data governance project is essential](https://www.financedigest.com/what-is-a-virtual-data-room-unveil-the-essential-information-here.html "What is a Virtual Data Room? Unveil the Essential Information Here!") to its success. Many underestimate the time and resources required to [drive value from the process and simply don’t have the team to support](https://www.financedigest.com/seenthis-joins-ad-net-zero-uk-and-supports-drive-in-the-us.html "SeenThis joins Ad Net Zero UK and supports drive in the US") it. For [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023"), which hold enormous amounts of data, this is a particularly big project. Mistakes cannot be made due to the sensitivity of the [data they hold so it is important](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") that the people and processes are in place to support the project.

[**Time is money**](https://www.financedigest.com/modernisation-of-insurance-technology-saves-invaluable-time-and-money.html "Modernisation of insurance technology saves invaluable time and money")

[Technology is constantly evolving and innovating to make processes easier and more efficient across a number of industries](https://www.financedigest.com/the-benefits-of-adopting-cloud-technology-in-the-finance-industry.html "The benefits of adopting cloud technology in the finance industry"). In recent years, managed [services have transformed](https://www.financedigest.com/devops-the-secret-tool-thats-transforming-financial-services.html "DevOps: The Secret Tool that’s Transforming Financial Services") how we work – no longer do internal teams have to be burdened by time-consuming tasks that they have limited expertise in.

The emergence of [Data Governance-as-a-Service (DGaaS) is set to fill the gaps between the opportunities that data governance offers and the general lack of expertise in most organisations](https://www.financedigest.com/avoiding-a-big-data-car-crash-how-to-organise-your-data-to-detect-fraudulent-claims.html "Avoiding a big data car crash: How to organise your data to detect fraudulent claims"). Designed to take the risk away from investments, it will deliver the four [key components of a strategy to ensure data](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") governance projects succeed:

**1\. Discovery & classification**

The first essential [step of any data](https://www.financedigest.com/10-steps-to-stop-lateral-movement-in-data-breaches.html "10 Steps to Stop Lateral Movement in Data Breaches") governance project is data discovery and classification. Quite simply, it determines exactly what [data an organisation](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") holds and where it is stored, before identifying each asset and determining the appropriate level of protection it requires. Without this detailed insight, the data assets held by an organisation are unknown and, therefore, it is impossible to protect and [drive value](https://www.financedigest.com/how-embedded-insurance-can-drive-growth-and-value-for-the-insurance-and-finance-sectors.html "How Embedded Insurance Can Drive Growth and Value for the Insurance and Finance Sectors") from them.

**2\. Operationalise the process**

DGaaS removes the requirement for [internal operations or expertise in 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") governance, allowing organisations to instead channel resources into adding value to the business. By being involved in the initial setup, organisations can create and design the policies they wish to enforce and allow the managed [service](https://www.financedigest.com/managing-the-hidden-security-gap-in-financial-services-the-office-printer.html "MANAGING THE HIDDEN SECURITY GAP IN FINANCIAL SERVICES: THE OFFICE PRINTER") provider to deploy and manage the rest of the process.

**3\. Process creation and documentation**

Next, the [service offers](https://www.financedigest.com/barclays-sets-up-taiwan-subsidiary-to-offer-brokerage-services.html "Barclays sets up Taiwan subsidiary, to offer brokerage services") integrated consultancy to help drive the organisation’s ideas and objectives through to execution. Working directly with the managed service provider, the organisation is guided through what the project entails, what people and processes are required, and which tools will [ensure success](https://www.financedigest.com/strategic-budgeting-ensures-success-of-community-support-programs.html "Strategic Budgeting Ensures Success of Community Support Programs").

**4\. Data Management**

With the other steps complete, organisations can take the raw outputs and drive significant value. Tangible business outputs, such as data quality, lineage, encryption and master data management, can be utilised.

Ultimately, DGaaS ensures that organisations approach the planning, design and delivery of a data governance strategy with a focus on their core objectives, ensuring  that the driven [value is directly applicable and beneficial to the business](https://www.financedigest.com/keeping-data-connected-for-greater-business-value.html "Keeping Data Connected for Greater Business Value"). Instead of experiencing the frustration of failed investments, [data governance becomes part of the standard business](https://www.financedigest.com/finalised-pan-european-data-protection-laws-set-the-new-standard-for-a-privacy-friendly-business-environment.html "Finalised Pan-European data protection laws set the new standard for a ‘privacy-friendly’ business environment") toolkit, with technology acting as an enabler.

**The journey to a [successful data](https://www.financedigest.com/big-data-suggests-leicesters-football-success-could-usher-in-economic-boom.html "Big data suggests Leicester’s football success could usher in economic boom") governance strategy starts here**

The [finance industry](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") is notoriously slow at adopting the latest technologies. But, in today’s data-centric economy, [financial institutions cannot afford to fall behind as cryptocurrency and digital banks](https://www.financedigest.com/why-banks-could-stand-to-learn-a-thing-or-two-about-financial-inclusion-from-fintechs.html "Why banks could stand to learn a thing or two about financial inclusion from fintechs") continue to gain popularity at an unprecedented rate. A successful data governance strategy will allow such organisations to gain [business](https://www.financedigest.com/5-simple-ways-to-prevent-a-data-breach-from-putting-your-accountancy-practice-out-of-business.html "5 Simple ways to prevent a data breach from putting your accountancy practice out of business") insights from their data that can help drive innovation and gain a competitive advantage. DGaaS guides you across the bridge between objectives and impacts, [avoids the implementation roadblocks and makes sure you reach your destination of compliance](https://www.financedigest.com/how-to-avoid-the-compliance-recruitment-merry-go-round.html "HOW TO AVOID THE COMPLIANCE RECRUITMENT MERRY-GO-ROUND") and added value.


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