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Level Up Your Data Strategy: Improving Access & Ownership

Data lies at the heart of every successful financial institution (FI), yet effectively accessing and managing it remains a persistent challenge for many banks and credit unions. Data is everywhere, making it hard to establish ownership and ensure accessibility. This blog, part of our series Level Up Your Data Strategy: Practical Steps for Smarter Decisions, explores practical solutions to help FIs maximize the potential of their data without requiring significant investments. 

Why Access and Ownership Matter 

Our work with FIs highlights common concerns regarding data usage. Recognizing and addressing these challenges can unlock significant opportunities for smarter decision-making: 

  • Access Gaps: Employees lack proper tools or permissions to find and use data. Despite having dozens of systems with valuable data, employees often don’t know what’s available.
  • Trust Issues: Data quality and definitions vary, causing skepticism. Core data often passes through various systems or changes in format, creating false perceptions about accuracy.
  • Usability Obstacles: Disorganized and poorly standardized data storage limits usability. Scattered data across multiple directories complicates search and retrieval.

Addressing these barriers can significantly enhance decision-making and outcomes. 

Employee Challenges: Trust, Ownership, and Understanding 

Effective data access and ownership begin with employees. Below are three critical challenges and practical solutions: 

1. Building Trust in Data 

Mistrust in data often stems from inconsistent definitions. For example, terms like "deposit balance" might refer to daily balances, monthly averages, or totals by household. Misaligned definitions reduce confidence in data. 

  • Solution: Create a "data dictionary" to standardize terminology and cite sources. By tracing data back to its origin and clarifying differences, you can build trust.

According to a survey by NewVantage Partners, 72% of executives cite cultural barriers, including lack of trust, as the primary obstacle to becoming data-driven.[1] 

2. Clarifying Ownership 

Ownership disputes arise when departments or individuals limit data access. While some restrictions are necessary for security, excessive limitations hinder collaboration. 

  • Solution: Designate a core group of "data ambassadors" with clear responsibilities. Ensure transparency by communicating their role across the institution.

3. Improving Data Understanding 

Not every employee is a data expert, but many need to interpret and use data. Without proper training, errors and misinterpretations are inevitable. 

  • Solution: Provide targeted training for key employees and develop use cases to illustrate proper data handling. A well-trained core team can serve as a resource for others.

Companies that prioritize data literacy report a 33% increase in productivity, according to Gartner.[2] 

Data Storage Challenges: Organize and Standardize 

Even with motivated employees, disorganized data storage creates friction. Here are common issues and solutions: 

1. Inconsistent File Names 

Ambiguous file names make it difficult to locate reports. For example, a file named "MKTBal031223" might confuse users searching for "Money Market Balances March." 

  • Solution: Establish naming conventions that are intuitive and searchable. Test these conventions with end users to ensure clarity.

2. Decentralized Storage 

Storing data across multiple locations increases inefficiencies and the risk of losing critical information. 

  • Solution: Consolidate data into a centralized repository with universal access. Centralized storage simplifies future audits, cleanups, and cold storage migrations.

Centralized data storage can improve operational efficiency by 20%, according to McKinsey & Company.[3] 

3. Unstandardized Reports 

Inconsistent reporting formats and terminology reduce usability. Standardization can significantly improve clarity and reduce errors. 

  • Solution: Develop standardized templates for reports, including layouts, colors, and terminology. Balance standardization with flexibility to maintain engagement.

Action Items to Start Today 

The goal is to incrementally improve data literacy and usability. Here are actionable steps to begin: 

  1. Clear the Decks: Address unclear definitions and ownership disputes. Leadership-driven expectations can reduce barriers and foster collaboration.
  2. Consolidate and Standardize: Create a central repository for data and reports. Develop a data dictionary and standardize file names to improve usability.
  3. Focus on Specific Solutions: Identify tools, software, or processes aligned with strategic goals. Leveling up within your institution’s culture ensures sustainable momentum.
  4. Target High-Impact Needs: Apply these practices first to critical reports or datasets linked to strategic priorities. Track and share KPIs consistently to demonstrate value.

Building Alignment for Greater Impact 

Access and ownership form the foundation of a successful data strategy. By addressing employee challenges and improving storage practices, your institution can foster a culture of trust, collaboration, and smarter decision-making. 

As you implement these solutions, focus on making data easier to understand, access, and apply. The resulting improvements will not only benefit your employees but also enhance the experience for the members or customers you serve. 

 Want more information and guidance on how to level up your data strategy? Register for our webinar. 


References 

  1. NewVantage Partners. "Big Data and AI Executive Survey 2023."
  2. Gartner. "The Value of Data Literacy in Driving Business Outcomes." Available at: https://www.gartner.com
  3. McKinsey & Company. "The Power of Centralized Data Management." Available at: https://www.mckinsey.com