Data engineering is an often forgotten discipline outside hardcore IT teams. Many modern managers believe that any business problem will already have a software solution that is developed and ready to go. This is not always the case – especially in areas of business that are changing rapidly, such as finance.
The finance industry is constantly evolving and offering new services and products to customers. Many traditional banking brands find that their ability to innovate and create new products is largely defined by how quickly their customer platform can evolve.
Often the problem is not the front end – it is the data itself. New products and services require new data and how this is stored and connected to all the existing data and processes is the real challenge. So data engineering is an important discipline because smart data design can then create a more flexible business.
When you consider new information systems in this way it becomes clear that using a new technology system is not as simple as just buying a new spreadsheet. The processes that support the products inside your business are bespoke and this also applies to the data model.
A finance company needs to think carefully about the entire data engineering process because this creates a foundation for both innovation and supporting ongoing products.
A bank wants to create the ability to send two payment cards to a customer – not just one. Some customers may find it difficult to visit shops, so they request an extra card for a carer to use. How does this change the underlying data model and processes? Is it just a clone of the existing card or are new security protocols required to manage an additional bank card?
Finance companies that want the ability to create new products quickly need to think carefully about how their data is organized and who is organizing it. Do they have a strategic vision with one eye on the future or are they just fighting fires day after day and trying to stop the system from collapsing?
An understanding of this strategic approach to data engineering is important for any company – particularly in industries such as finance – that wants to evolve gradually, but also innovate rapidly.
Banking is an industry that has always been filled with data. We have already written why Big Data in banking is set to explode. Moreover, the COVID-19 coronavirus pandemic has offered data analysts some great opportunities to study Big Data trends across the world. Read more about Big Data in a time of pandemic.