IBS Journal February 2015
VPBank completes strategic initiative on data governance
VPBank, a medium-sized bank in Vietnam, has completed an overhaul of its data management model and set up a new data governance framework, to be applied enterprise-wide. Fintellix (formerly iCreate – see opposite page), an India-based com- pany that specialises in business intelli- gence (BI), assisted with the project. The bank is halfway through its five-
year growth strategy, with BI being one of the key aspects of successful transforma- tion. ‘BI is an extremely important initiative through which we can develop a compre- hensive approach for converting data into usable and actionable information,’ states Vivek Bhanot, director of BI at VPBank. This, he adds, requires robust data govern- ance. ‘The success of any BI programme depends on how the enterprise manag- es its data.’
VPBank has been experiencing a ‘data
deluge’, with large volumes of data gener- ated on a daily basis through thousands of customer interactions over a multitude of touch points, explains Bhanot. ‘The data was in silos and there was no single source of truth. Our management had to grapple with issues surrounding data quality, con- sistency and integrity.’ Whilst there was ‘a general consensus
about data being VPBank’s strategic asset’, the bank was finding it difficult to utilise it in a systematic way, he recalls. It was also difficult to manage the data properly throughout its lifecycle (capture, storage/ retention and consumption) as there was no ‘robust governance mechanism’. With- out this it would be impossible to derive value from a BI initiative, he observes. Hence, VPBank embarked on a bank-
wide data governance project. It set up a Business Intelligence Competency Center (BICC) in early 2014, which is responsible for owning, executing and managing the data lifecycle strategy. ‘Just the technology implementation is not enough. The data needs to be managed through a consist- ent set of policies and standards,’ he states. VPBank is the first bank in the coun-
try to have tackled challenges in end- to-end data management with a holistic approach, says Bhanot. The bank’s CEO instituted and chairs a ‘Data Committee’
© IBS Intelligence 2015
www.ibsintelligence.com 15
with key personnel from the management board as its members. ‘Unique to Vietnam- ese banks, the VPBank Data Committee convenes on a monthly basis and tracks the progress of various data-related initia- tives in addition to setting the direction.’ The bank carried out a selection pro-
cess to find a specialist consultant. IBM, Infosys, Sprint Milestone and Tech Mahin- dra bid for the project alongside Fintellix. ‘We were mainly looking for four things in the winner – strong banking experi- ence in emerging markets, expertise in data management strategies, experienced consultants and, most importantly, a flex- ible approach when working with us,’ says Bhanot. ‘Fintellix stood out in almost all criteria. The fact that banking is its only focus area was also a major consideration point.’ The deal was brokered through Fin- tellix’s local partner, Net Vision. The deliverables of the project were:
o data governance as-is assessment report; o data governance charter; o data governance policies and work- flows; o a three-year roadmap; o a pilot data quality implementation. It was a twelve-week assignment,
completed within schedule, says Bhanot. ‘The biggest challenge was that data gov- ernance at that time was an alien concept,
not just in VPBank but also in the broader market,’ he recalls. ‘Many people in senior management did not fully grasp the ben- efits of doing the project or were sceptical of its success. It was extremely important for both Fintellix and VPBank to make sure that the project was on track and that key stakeholders were educated on the way.’ Like in any transformation project,
there was some resistance, he adds. ‘Two things helped to move things through: a phased approach throughout which everyone saw components being deliv- ered and presented to them weekly or so, and, more importantly, the guidance and support from the bank’s CEO, who is the sponsor of the project.’ The outcome, states Bhanot, has been
a success. ‘A strong foundation has been laid and the bank’s team is quite confident to build on it.’
VPBank is currently losing about $2
million of revenue per year because of data quality issues, Bhanot estimates. ‘The investment in this programme is fully jus- tified. We have already developed a base- line case for data quality for our main busi- nesses. As per Fintellix’s roadmap, tackling poor data quality is the first milestone for us and we will do an ROI calculation with- in the next three to four months after tak- ing stock of improvements made over and above the baseline.’
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