Cracking FIs’ 90/10 Data Monetization Problem
When seven CEOs of the largest banks in the United States gathered on Capitol Hill earlier this month, the topics and questions lobbed at them from members of the House Financial Services Committee spanned all manner of subjects.
The focus of the hearing was, generally speaking, the evolution of financial services in the wake of the financial crisis, and of course the spotlight shone on the myriad ways that things have changed over the past decade. FinTech, cryptos, pay gaps, capital requirements and even the ethics of doing business with firearms firms were all under discussion.
And, of course, data security – or perhaps the lack thereof – was fair game. The executives who testified said they have been focusing on data security, and will continue to do so, as huge breaches have dominated the headlines. Said Bank of America CEO Brian Moynihan, “We are in, effectively, a war on cybersecurity.” Along with JPMorgan CEO Jamie Dimon, he discussed how myriad regulations and bodies governing data and its use can be counterproductive in forging an effective strategy against the bad guys.
Might there be a solution in a compliance and data security approach that can keep consumers’ data safe, even as banks monetize that very data?
The endeavor is a win-win, allowing for mutually beneficial relationships between financial institutions (FIs) and their customers – and to get there, according to Randy Koch, CEO of ARM Insight, embracing synthetic data can make all the difference.