Integrated Information Management and Analytics

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Deriving Business Value From Information Strategy & Architecture

Deriving Business Value From Information Strategy & Architecture

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  • 1. Integrated Information Management & Analytics Deriving Business Value From Information Strategy & Architecture Deloitte Information Management & Analytics Practice Jojy Mathew Principal, FSI Analytics & Information Management Deloitte Consulting 18 Sept 2013
  • 2. Market Drivers – Next 3-5 Years Information Management as strategic focus An evolving landscape of regulations, higher level of scrutiny by regulatory agencies, and increased cost of compliance In an interconnected, high-velocity, and increasingly complex financial marketplace — institutions should be prepared to deal with volatility and uncertainty. Gradual shifts in demographics have dramatic influences on preferences and consumer behavior patterns that institutions need to address. Regulatory compliance Risk Growth and profitability Eroding customer loyalty due to the increasing ease of changing bank accounts and aggressive marketing from competitors. Security and fraud 1 Electronic transfers, card transactions, and money from restricted entities pose a direct risk to compliance, customer protection, and financial soundness. Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 3. Information Is For The Business End-to-end solution requirements for an FS organization CMO CFO CRO Analytics enable decision makers to have the required information at the right time at their finger tips. Advanced analytics enable the business to predict where the risks and opportunities are. CxO Strategy CIO Analytics CDO Controls (Data Governance, Data Quality, Business Semantics) ascertain the efficacy of the data and enables the information to be trust-worthy. Controls Information Foundation 2 A strong information management foundation brings together disparate information of a Financial Services organization. Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 4. Its Not Optional – Basel is focused on Data Emerging regulatory & compliance requirements In January 2013, the Basel Committee on Banking Supervision (BCBS) issued their “Principles for effective risk data aggregation and risk reporting” as an executive template for data management. Compliance Criteria: 1. BCBS239: Clearly sets out expectations and audit requirements for Risk data granularity, audit and transparency across all Risk. 2. Constructing a Basel RDA compliant data management program is a herculean task for most banks – if approached incorrectly and without ‘fit-for-purpose technology accelerators. 1. Business relevant models 2. Defined outputs 3. Data Management enabling business user access and IT integrity 3. Building models is not the problem; the challenge is integrating them into a robust, unified enterprise information model that an organization can use to “prove” compliance with Basel RDA principles and, at the same time, leverage their inventory of data assets for addressing strategic and tactical business objectives. 3 Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 5. Accountability – CFO, CRO, CXO Emerging regulatory & compliance requirements Capital Risk Adequacy reports must be signed by a senior officer of the reporting entity who can attest that the risk estimates and other information submitted in the report meet the requirements set forth in 72 Fed. Reg. 69288 ("the final rule" that implements the advanced approaches for determining risk-based capital for credit and operational risk). The senior officer may be the chief financial officer, the chief risk officer, or the equivalent senior officer.1 “I, the undersigned senior officer of the named bank, bank holding company, or savings association attest that the FFIEC 101 report for this report date has been prepared in conformance with the instructions issued by the federal regulatory authority and that the reported risk estimates meet the requirements set forth in the final rule to the best of my knowledge and belief.”2 1,2 4 Excerpts from Cover Page of FFIEC Form 101 Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 6. Basel RDA (BCBS 239) – Requirements 1 Governance 6 Adaptability 11 Distribution 2 Data architecture and IT infrastructure 7 Accuracy 12 Review 3 Accuracy and Integrity 8 Comprehensiveness 13 Remedial actions and measures 4 Completeness 9 Clarity and usefulness 14 Home/host cooperation 5 Timeliness 10 Frequency 5 Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 7. Solution Point of View: Information About Information SAP provides a core foundation – Business Information Model Deloitte DIMF enables operationalization of Business Semantics, Data Governance, Data Quality – Basel RDA Requirements 6 Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 8. Solution Point of View: Information Architecture Enterprise Data Sources Relational Databases Retail Corporate Data Integration Analytical Foundation ETL Hub Insurance Extract-Transform-Load (ETL) Standard Tools Operational Data Store Data Warehouses Wealth Management Spreadsheets Federated Query, SQL Data Consumers Reporting and Visualization Standard Reports Ad-hoc Query SOA Capital Markets Analytical Tools Analytical Reports OLAP Cubes Data Marts Metadata Regulatory Reports Non–Relational Data Sources Reporting Unstructured and Text Integration Dashboards MDM Spreadsheets Files (CSV, TXT) Data Mining PDF Big Data Analytics Big Data Integration Channels Business Applications XML Logs Web Sites Hadoop Data Movement Logs/Streams Social Media Hadoop File Systems Audio /Video Sensors Marketing App Desktop Data Processing (Map Reduce) Product App 7 Data Quality SQL, T-SQL Data Storage (HDFS) Data Security Mobile Simulation& Optimization Technology Applications C, C++, Java Shared Data Services Statistical App Risk App Metadata Services (HCatalog) Blogs Map Reduce Feeds Data Access (Pig, Hive, Avro) Metadata Hadoop Computations Web Social Media Data Governance Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 9. Solution Point of View: Linking Business To Technology Business Internal Glossaries Business Owner Technology Owner Ownership Data Quality Rules External Glossaries Business Term Glossaries Rules Compliance Industry Glossaries Business Processes Data Models Operationalization requires the integration of Business and Technology Technology Equity Fixed Income Back Office Trade Feeds Reference Data Feeds Analytics ETL Operational Data Sources ETL ETL Data Mart Standard Reports ETL Analytical Reports Data Mart ETL ETL OLAP Research Finance Feeds ETL Data Warehouse ETL Data Mart Regulatory Reports Dashboards Finance Risk 8 Risk Feeds Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 10. Solution Point Of View: Information to Insight Information Becomes Insight Better Business Decisions Enabled Understanding of “Critical Data” improved Data quality issues management addressed “Underground Network” of data sources eliminated 9 Communications between Business and IT improved Operational risk reduced Catalog of reusable “Golden Data Sources” established Regulator request responsiveness increased Value of current data assets leveraged Copyright © 2013 Deloitte Consulting LLP. All rights reserved.
  • 11. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2011 Deloitte Consulting LLP. All rights reserved. Member of Deloitte Touche Tohmatsu Limited