Why Should Banks Invest in Information Lifecycle Management?
No doubt, banks accumulate a wealth of data. Not only do banks have millions of customers, each generating transactional data multiple times per day, bank employees also generate huge amounts of data on an ongoing basis. Whether generated by customers, employees, or both, all of this information needs to be managed and stored.
At the same time, some of this information may no longer be needed. However, due to data retention policies, governmental regulations, legal concerns, and other factors, simply deleting old data is no longer an option. Even a small claims lawsuit could prompt banks to call up data from many years back. Risk mitigation and legal and regulatory compliance prevent banks from haphazardly deleting files.
Storing data indefinitely isn't necessarily an option either. For example, where will all that data be stored? Storage isn't exactly cheap, especially at the levels required by banks. Not only that, data volume is predicted to double each year.
Information lifecycle management is the answer.
What is information lifecycle management? According to BusinessDictionary.com
, information management is:
Application of management techniques to collect information, communicate it within and outside the organization, and process it to enable managers to make quicker and better decisions.
Information lifecycle management goes further, managing information from its creation to its disposal. For example, with an information lifecycle management system in place, data retention policies can be designed and implemented. At the end of its lifecycle, data can then be deleted properly.
Once crucial aspect of information lifecycle management involves data archiving. According to Dolphin, a SAP partner,
"Less data = faster performance + cost savings"
The idea behind data archiving is that data that is no longer needed on a day-to-day basis but must still be retained is moved off of costly primary storage and into a more economical data archive. Data stored within a data archive remains accessible should it be needed; however, the organization realizes cost savings because that data no longer occupies the company's more expensive storage systems.
The sheer volume of data banks generate coupled with regulatory and legal concerns about data retention make information lifecycle management and data archiving solutions a must for banks.
1. Dolphin Corp, "Information Lifecycle Management," - http://www.dolphin-corp.com/information-lifecycle-management/
2. Wall Street and Technology, "The Discipline of Information Lifecycle Management," - http://www.wallstreetandtech.com/data-management/the-discipline-of-information-lifecycle-management/a/d-id/1278993
3. Business Dictionary, "Information Management Definition," - http://www.businessdictionary.com/definition/information-management.html
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