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Trends in Financial Services - the decision-centric institution cometh!

Duffie Brunson wrote an interesting piece on b-eye-network recently - Dominant Trends in Financial Services - based on Knightsbridge Solutions annual white paper. I am not going to try and summarize it all but a couple of points did leap out at me

  • Duffie talked about a compliance calm with some of the big drivers like BASEL II getting held up for US banks at least. This has allowed banks to take stock of their compliance investments and work on building a better data infrastructure for the future. It should be noted, however, that international financial institutions are getting less of a breather and that compliance still requires compliant processes and decisions, not just data. There's a lot of value in EDM when it comes to compliance, with more articles etc here.
  • One trend is Enterprise level BI, especially for risk data at an enterprise level. Clearly the growth in availability of enterprise-wide data increases the odds, and value, of enterprise-wide decisions. Having risk data across the enterprise enables risk-based decisions to be enterprise-wide and these kinds of decisions are often ideal for an EDM approach.
  • SOA and Actionable BI are also identified as key trends and a requirement for actionable BI is often really a requirement for decision automation or EDM. If I want to take action based on business intelligence in a high-volume transactional environment then I need EDM not just reporting and analysis tools.

Lastly he identifies a growth in "data-centric" institutions. It seems to me, however, that it is not the data or the analysis of that data that makes an institution competitive but the decisions it takes with that data based on that analysis. I would not, therefore, talk about data-centric institutions but decision-centric institutions. It is in these organizations that the leaders in EDM can be found.

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