Financial services organizations are keen to mine insights from a growing number of data sources. But sometimes, due to some limitations they are held back from sharing data freely. Cloud services can ease the technical burden of sharing data. The CDMC standard is finalized this year by the cross-industry EDM Council.
CDMC defines best practices to ensure that cloud environments meet the security. The standard was developed by a working group co-chaired by Morgan Stanley and Refinitiv. More than 20 leading financial institutions are there, along with the biggest cloud providers. This standard addresses broadly the needs of financial services firms. But data sharing is a critical area. The financial businesses can meet the needs of their customers here. Banks and other finserve companies are under intense pressure to innovate with a new wave of fintech startups.
The technical burden of sharing and securing data, is addressed by the cloud data platform. CDMC accelerated the pace of financial companies’ migration of operations to the cloud. It will allow the entire industry to become more tightly interconnected. Data can be shared in new ways with customers, partners and regulators. This model has been applied in the security industry. They have a secure mechanism to share financial data in the cloud. Data sharing in the cloud can play a much bigger role is in Environmental and Social Governance (ESG). Institutions that manage pensions and sovereign wealth funds are under pressure. This is to ensure their investments are meeting the new ethical and environmental standards.
There are now a multitude of third-party data sources in the cloud. In the Snowflake Data Marketplace, there are more than 650 live, ready to consume data sets. Incorporating this data will allow the financial service companies to improve their predictive analytics. The CDMC is a critical step in paving the way to a more complete cloud migration for the finserve industry.