In the last 10 years, data management has become more of an issue for risk directors, where once it was purely the purview of operations and technical directors.
In smaller markets, like mortgages, fraud is more prevalent. So is data theft and misuse.
Scruples tend to evaporate in the heat of competition during a downturn. Businesses scramble to survive and more people are willing to cut corners and use your data for their own benefit. So make sure you know your data managers and suppliers and deal with them directly.
To combat this threat, banks must bring data management directly under their control, which means cutting out IT middlemen.
Too often banks rely on their panel manager and other third parties to monitor IT suppliers. This is a fool’s paradise.
A trusted IT supplier won’t lose your data or have notable periods of server down-time. They will tell you where your data is, who it is shared with, and how it is used.
Lenders should pick suppliers with modern web-based systems that use cutting-edge IT code. They should not rely on providers that use cumbersome systems written in archaic programming languages.
That will help them meet the best practice approaches to third parties laid out by the Financial Services Authority’s thematic review last June.