Regulatory Framework for Supporting Data Science Innovations Within Banks
In order to make sure that banks are checking all the boxes to comply with data requirements while still supporting their innovation initiatives using data analytics and data science to enhance their business processes, banks must prepare a detailed data governance plan that not only keeps data safe and of high quality to be useable, but also focuses on the ways data is used and changed through different processes and how that can be recorded. The be in control of data, a part of governance now needs to entail an understanding of the workflow of data.
For a bank operating globally, an actionable data governance plan should include managing data in accordance with both regional and global regulations. Some of the largest considerations would be the European Union (EU) General Data Privacy Regulation (GDPR), requiring businesses to protect the personal data and privacy of EU citizens, and PSD 2, which intends to contribute to a more integrated and efficient European payments market, improve and level the playing field for Payment Service Providers (PSPs), make payments safer and more secure, protect consumers, and encourage lower prices for payments. Both GDPR and the Requirements to use and prove data provisions within PSD 2 are dedicated to the protection of personal data, and therefore require firms to fully understand how to protect their data, where their data is coming from, and where it is being used.