If you saw the following stats...
- 30 to 40 percent more efficient in data requests
- 20 to 30 percent reduction of costs related to data management
- 10 to 15 percent bottom line growth related to better decision making
- 25-30 percent bottom line growth related to advanced analytics
...you would most likely say, “Yes! How do I get those results?”
Recognize your data as a valuable asset
Before you turn to lending, turn to your data. The “downstream” benefits above can be achieved from a robust data governance program. And they illustrate that data, like loans, can be tied directly to the bottom line.
Unfortunately, most credit unions don’t even think about their data in this way. Once the importance of data governance is well-understood, the implications can be eye-opening. In fact, data has been identified as a strategic business asset by many organizations. So, like any strategic asset, data needs to be governed by key components that are based on best practices to fully maximize the financial and operational benefits.
There are six key elements of data governance credit unions should focus on. They are a good place to start and may leverage best practices that could already be in place at your credit union.
6 key elements of data governance
- Data Vision and Goals
- Data Accountability
- Data Prioritization
- Metadata and data lineage
- Data Quality
- Data Policies and standards
Look at the quality of your data
An end-to-end data quality and issue management process is vital. But what does it look like?
- Analyze data and prioritize key data elements to develop an approved list of enterprise data elements.
- Create business rules mapped to the enterprise data elements.
- Measure and report metrics with data quality dashboards.
- Identify and analyze issues and root causes with a consolidated repository.
- Work with data to governance teams to develop a list of remediation measures; continuously implement and monitor.
Want to find out more? Listen to our podcast: “Take Care of Your Data, and It Will Take Care of You”, where David Rose, Analytics Expert at McKinsey & Company, provides clarity and insights to data governance.