An outlook on integration of database and data virtualization for the financial services industry

Understanding the data landscape and the organizational challenges

The financial landscape is evolving and is now more inclined towards investments in technology. Globally, financial institutions are transforming their data landscape, and they recognize the need to be able to adapt robustly to dynamic market trends.

Considering the latest developments, these institutions primarily rely on data-driven insights to optimize decision-making, enhance the customer experience, and gain a competitive advantage. Financial institutions are strategically directing their attention towards a revitalized data architecture by transitioning from conventional legacy systems to modern data architecture. Some financial institutions have chosen to partner with third-party vendors to revolutionize their data infrastructure within the realm of data warehousing by virtualizing the physical database.

By leveraging innovative solutions to virtualize the data warehouse, financial institutions have efficiently orchestrated the transition from legacy to modern in a remarkably short space of time.

This transformation is based on the concept of ‘database virtualization’ wherein virtual clones of physical databases are created to be used by consumers. This helps in the reduction of additional hardware costs, optimizing memory utilization and better integration, and has led to an interplay of both opportunities and challenges.

Summary

This white paper provides a pivotal strategy for the financial industry by demonstrating how integration of data virtualization with database virtualization can help advance innovation within the industry.

Institutions are enabled to navigate through the evolving data landscape with greater agility, efficiency, and competitiveness.

This integration greatly optimizes three critical facets of data management:

1. It delivers holistic data aggregation which will provide a unified view of data from various disparate sources. This allows for easier and faster decisions and enhances operational efficiency.
2. It ensures enhanced compliance with regulatory requirements by centralizing data governance. Enacting data encryption – to protect sensitive data, align with data protection regulations and establish robust data lineage – helps to track the lineage of data and generate audit trails. This will demonstrate compliance with regulations and provide transparency in data management.
3. Lastly, it holds a competitive edge for innovation in the emerging market trends.

With changing business requirements and an evolving data landscape, rapid data access and integration capabilities enable institutions to respond swiftly to market changes, launch new products, and develop innovative new services. This also improves customer service as virtualization techniques can help bring a deeper understanding of customer behavior, resulting in an enhanced customer experience.

Author's Bio

Rashmi is an experienced and skilled consultant at Synechron and is currently part of the Data Practice in Amsterdam. With more than seven years of experience in the field of data management, her expertise lies in analyzing data patterns, identifying risks and associated gaps, and implementing data governance and data quality measures for optimal results. Rashmi has a deep understanding of simplifying complex and legacy data processes for improved efficiency.

For more information, please contact the author at: Rashmi.Deshpande@synechron.com

The Synechron Data Management Research Center can provide companies with deeper insights into supervisory guidelines and their applicability, helping companies to understand how data management capabilities can facilitate their implementation.

For more information on Synechron Data Management Research, please contact: Stefano.pierucci@synechron.com

FILL IN THE FORM BELOW AND DOWNLOAD THE WHITE PAPER