State Street s David Saul argues big data is better when it s smart data.
Banking, like many industries, faces challenges in the area of data consolidation. Addressing this challenge can require the use of semantic technology to accomplish the following:
- A common taxonomy across banking divisions allowing everyone to speak the same language
- Applications that integrate data including structured data with unstructured data and semantic facts about trading instruments, transactions that pose risk and derivatives
- Ways to search all of the data instantly and represent results using different types of analysis, data visualization or through relevance rankings that highlight risk to the bank.
"What's needed is a robust data governance structure that puts underlying meaning to the information. You can have the technology and have the standards, but within your organization, if you don't know who owns the data, who's responsible for the data, then you don't have good control."
Some organizations have built data governance taxonomies to identify the important pieces of data that need to be surfaced in rich semantic applications focused on risk or CRM, for example. Taxonomies and ontologies understand how data is classified and relationships between the types of data. In turn, they can be used to create facts about the data which can be stored in modern databases (enterprise NoSQL) and used to drive smart applications.
Lee Fulmer, a London-based managing director of cash management for JPMorgan Chase says the creation of [data governance] standards is paramount for fueling adoption, because even if global banks can work out internal data issues, they still have differing regulatory regimes across borders that will require that the data be adapted.
"The big paradigm shift that we need, that would allow us to leverage technology to improve how we do our regulatory agenda in our banking system. If we can come up with a set of standards where we do the same sanction reporting, same format, same data transcription, same data transmission services, to the Canadians, to the Americans, to the British, to the Japanese, it would reduce a huge amount of costs in all of our banks."
Semantic technology is becoming an essential way to govern data, create a common language, build rich applications and, in turn, reduce risk, meet regulatory requirements and reduce costs.