# How to fulfil the Digital Transformation Requirement in Banking
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-20
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Unlocking Opportunities in Financial Services with Data
Meta Description: Discover how data virtualisation revolutionises financial services, providing real-time insights and reducing costs for firms in the digital age.
URL: https://financedigest.com/how-to-fulfil-the-digital-transformation-requirement-in-bankinghtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/smart-city-with-smart-services-and-icons-internet-of-things-networks-and-augmented-rea-sbi-301985679-1-1736837544110-compressed.jpg)

_By **Charles Southwood,** Regional VP – Northern Europe and MEA at_ [_Denodo_](https://www.denodo.com/en)

There is no doubt that the financial industry is currently undergoing a massive digital transformation. In recent years, there has been an exponential boom in the amount of data and personal information that financial services (FS) institutions have access to. If used correctly, this data could unlock multiple opportunities, both in terms of revenue and customer experience initiatives.

But, before FS companies can reap the rewards, they [need to be sure](https://www.financedigest.com/need-additional-funding-but-not-sure-how-to-go-about-it.html "Need additional funding but not sure how to go about it?") that they are able to both access and understand this data to stay competitive, whilst protecting their customers and also complying with industry regulations.

This is where [modern technologies such as data](https://www.financedigest.com/allianz-benelux-taps-into-modern-data-management-to-combat-fraud-and-foster-a-positive-customer-experience.html "Allianz Benelux Taps into Modern Data Management to Combat Fraud and Foster a Positive Customer Experience") virtualisation could help. By providing one single, logical view of all data no matter where it resides and diminishing the need for data replication, data virtualisation grants FS [businesses early and high visibility and makes the digital transformation](https://www.financedigest.com/3-reasons-why-businesses-get-stuck-at-the-starting-gate-of-digital-transformation.html "3 Reasons Why Businesses Get Stuck At The Starting Gate Of Digital Transformation") dream a reality.

**Making the most of all that data**

We are now in the open banking age, in which [digital is the foundation of finance and data](https://www.financedigest.com/why-data-is-the-best-weapon-in-the-war-for-digital-talent.html "Why data is the best weapon in the war for digital talent") reigns supreme. With FinTech challengers disrupting incumbent institutions through the use of APIs to provide seamless data integration, there’s a real need for financial firms to revolutionise the [way they deliver and utilise their own data to drive business](https://www.financedigest.com/5-simple-ways-in-which-your-business-can-save-water.html "5 simple ways in which your business can save water") outcomes.

With so much data generated every day – [IDC predicts that global data levels will increase to 175 zettabytes by 2025, a rise of 61%](https://www.networkworld.com/article/3325397/idc-expect-175-zettabytes-of-data-worldwide-by-2025.html) – getting access to the best data management architecture will be crucial to maintaining agility and ultimately achieving success for financial firms.

Data virtualisation presents a modern [approach](https://www.financedigest.com/putting-data-at-the-heart-of-a-customer-centric-approach.html "Putting data at the heart of a customer-centric approach") to data integration. Unlike extract, transform and load (ETL) solutions, which replicate data, data virtualisation leaves the data in source [systems](https://www.financedigest.com/interoperability-of-data-to-accelerate-the-ventilator-test-systems-market.html "Interoperability of data to accelerate the Ventilator Test Systems Market"), simply exposing an integrated view of all the data-to-data consumers. As business [users drill down into reports](https://www.financedigest.com/cma-report-looks-to-interventions-to-help-overdraft-users.html "CMA REPORT LOOKS TO INTERVENTIONS TO HELP OVERDRAFT USERS"), data virtualisation fetches the data in real time from the underlying source systems.

Data [virtualisation](https://www.financedigest.com/data-virtualisation-the-secret-weapon-in-the-challenge-for-compliance.html "Data virtualisation: the secret weapon in the challenge for compliance") proves that connecting to data is far superior to collecting it. It provides a single source of truth for all data that flows through various business systems, enabling [firms to access and combine data from multiple heterogeneous sources using business](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business") logic and to present information in single views to consumers in various formats. The benefits of being able to wrangle [data in this way are numerous for FS organisations](https://www.financedigest.com/tackling-the-complexity-of-data-within-financial-organisations.html "Tackling the complexity of data within financial organisations"). Data virtualisation can help them to improve their overall performance and efficiencies in a strategic manner, reducing costs and project cycle [times and helping to enhance business decision](https://www.financedigest.com/georgias-tbc-bank-slashes-loan-decision-time-with-fico-solution.html "Georgia’s TBC Bank Slashes Loan Decision Time with FICO Solution") making capabilities with real-time insights.

**Those** [leading the way](https://www.financedigest.com/bank-of-the-future-challengers-leading-the-way-to-cloud-adoption.html "Bank of the future – challengers leading the way to cloud adoption")

The Johannesburg Stock Exchange (JSE) is just one financial institution to [already realise the benefits](https://www.financedigest.com/uk-tourism-sector-already-reaping-the-benefits-of-brexit.html "UK TOURISM SECTOR ALREADY REAPING THE BENEFITS OF BREXIT") of data virtualisation. The JSE maintains over 180 disparate data sources [across](https://www.financedigest.com/dataiku-raises-28m-series-b-to-help-democratize-data-science-and-analytics-across-organizations.html "Dataiku Raises M Series B to Help Democratize Data Science and Analytics across Organizations") its data landscape. Additionally, over 120 different applications need to operate in perfect harmony to ensure that there is accurate settlement. Many are small in data volumes but high in complexity, so data integration is a [top priority](https://www.financedigest.com/2017-cfo-outlook-top-priorities-as-new-year-gets-underway.html "2017 CFO Outlook: Top Priorities as New Year Gets Underway"). Previously, the data had to be sourced and [integrated](https://www.financedigest.com/data-integrity-the-holy-grail-of-operational-efficiency.html "Data integrity: the holy grail of operational efficiency") from a variety of heterogeneous data systems to serve the needs of the various functions. Using traditional batch-oriented ETL [processes was becoming](https://www.financedigest.com/dash-passes-apples-rigorous-review-process-and-becomes-an-approved-digital-currency.html "Dash Passes Apple’s Rigorous Review Process And Becomes An Approved Digital Currency") cumbersome and inefficient, and in such a high-speed trading environment, the JSE could not afford anything less than 100% accuracy, 100% of the time.

To consolidate its intricate data landscape and aggregate data in real time, the JSE implemented the Denodo Platform, a data integration and data [management solution](https://www.financedigest.com/exact-launches-practice-management-solution-to-help-transform-accountants-into-trusted-business-advisors.html "Exact launches Practice Management solution to help transform accountants into trusted business advisors") built on data virtualisation, to build a logical data layer. All of the relevant [information sourced from these systems](https://www.financedigest.com/the-radiology-information-systems-market-shall-be-growing-unabatedly-in-the-future.html "The Radiology Information Systems Market shall be growing unabatedly in the future") is compiled into base views. The JSE has built more than 1,700 base views on [top of these data sources](https://www.financedigest.com/algeria-regains-spot-as-spains-top-natural-gas-source-enagas.html "Algeria regains spot as Spain’s top natural gas source -Enagas"), which are processed by transformation rules to produce derived and interface views. The [data integration layer processes](https://www.financedigest.com/reckon-introduces-link-to-bank-data-to-help-small-businesses-streamline-the-reconciliation-process.html "Reckon introduces link to bank data to help small businesses streamline the reconciliation process ") about 2 billion rows a month at the JSE.

Chester Enslin, Head of IT Enterprise Integration and [Software Quality](https://www.financedigest.com/struggling-banks-need-to-modernise-and-improve-software-quality-management.html "Struggling Banks Need to Modernise and Improve Software Quality Management") Assurance at the JSE, describes the benefits: “Denodo’s data virtualisation layer enabled us to serve the real-time data needs of our business. Since implementing the platform, we have been able to [provide 100% accurate data](https://www.financedigest.com/how-insurance-providers-are-starting-to-use-adas-data-to-price-cover.html "How insurance providers are starting to use ADAS data to price cover"), 100% of the time for our various functions, particularly post-trade settlements.”

As the digital [transformation of banking](https://www.financedigest.com/transforming-the-retail-banking-ecosystem-its-all-about-technological-innovation.html "TRANSFORMING THE RETAIL BANKING ECOSYSTEM: IT’S ALL ABOUT TECHNOLOGICAL INNOVATION") continues apace, organisations must look to leverage data management architectures such as data virtualisation to enable the insight that spurs the key requirements of agility and speed to stay ahead of the competition. The demonstrable [ability of data](https://www.financedigest.com/new-gleif-challenge-facility-extends-ability-to-trigger-updates-of-legal-entity-identifier-data-to-all-interested-parties.html "New GLEIF Challenge Facility Extends Ability to Trigger Updates of Legal Entity Identifier Data to All Interested Parties") virtualisation to generate considerable return on investment (ROI) is not to be ignored amidst a financial landscape where the margin between success and failure has never been thinner. The message for financial leaders is clear: data virtualisation is [key to fulfilling the digital transformation](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility") in banking.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---