An international firm yesterday said there is urgency for banks and other firms that maintain many databases in the Philippines to avail of new technologies, one of which is called data lineage that will allow them to comply with global standards in banking operations.
According to ASG, a software provider based abroad with office in Manila, a software called data lineage and meta data will help institutions, particularly banks, to speed up any process; what needs to be fixed; filling the gaps in the process; and help adopt for business change.
Praveen Kumar, general for Asia Pacific of ASG, said banks that issue credit cards will best benefit from data lineage.
"It works well if a credit card holder complains that his or her card is stolen. With this software, the bank can immediately cancel the credit card in a minute.
On the contrary, if the complainant said his or her card is found, the bank can reactivate it in an hour," Kumar, told the Daily Tribune in an exclusive interview yesterday.
He said the software is a major investment for banks that has many credit card customers. So far, according to the official, not a single bank in the Philippines has this technology that's why deactivating a card after a complaint is not that fast.
"In Singapore, a credit card owner can expect deactivation of his credit card within a minute after a complaint," Kumar said. There are approximately 7.5 million credit cards in the Philippines, more than half which are now migrated to Europay, MasterCard, Visa (EMV) technology from plain magnetic microchip.
Aside from migrating to EMV, all banks are also required to adhere to a global rule that mandates effective data handling.
Under Basel rules, all banks are required to follow BCBS 239 or the principles for effective risk data aggregation and risk reporting. "It is a standard compliance mandated by Basel rules. No bank can comply to this order without data lineage," the official added.
The data life-cycle process illustrates the various forks along the way where data may be transformed, or where "bad data" may be propagated.
These forks represent likely decision points, or points of governance, where data can be checked, validated, authorized, approved and where there may be a transition in data ownership and responsibility.
Data lineage provides a two-dimensional roadmap which helps any executive understand how data are produced and how they are consumed within an organization. ASG has been operating in the country for over a decade now.
At the moment, it is eyeing a rapid expansion because of the growing number of businesses as well as population.