Unlocking the power of data
Unlocking the power of data
CLIENT STORY

Unlocking the power of data

KPMG helped a major home loan corporation create a new culture for data management -- one focused on business value, not just regulatory compliance.

Client
A major home loan corporation
Sector
Financial services
Project
Managing and utilizing data
  • Client challenge
  • Benefits to client
  • Approach
  • KPMG insights

Client challenge

With over $2 trillion in mortgage loans, this major home loan corporation is on the road to becoming the best credit guarantor in the single-family housing market. One step on their way was overcoming a lack of structure and coherence in data management. That meant tackling cultural issues, too.

Delivering high-quality, accessible, useful data was at the heart of our client’s vision. Their history of data management was a troubled one. Analytics strategies and capabilities were disjointed, and, although isolated data initiatives were producing interesting results, they weren’t linked to strategic objectives.

The company needed to unlock the full value of data by changing the way employees maintained and shared it. Ultimately, they wanted greater certainty and insight around the loans they were guaranteeing.

Benefits to client

KPMG helped the company first address data strategy, standards, governance, quality, and controls and then develop of a new cultural approach to data as a source of business value, not just regulatory compliance.

  • Employees across the company can find the information they need quickly and easily with new platforms and tools. No more relying on personal networks.  
  • Data quality and consistency are improved by data and system landscape simplification and rationalization. Duplicate or poor-quality content are eliminated by new processes and controls.
  • Sharing of data and expertise is transparent following new processes to better reuse internal and third-party data. 
  • Rules, structure, and guidance for creation, storage, and use of data are clear.
  • A new internal brand helps the corporation’s workforce connect the dots between the organization’s strategy to investments in data; business value is centered on the principles of empowerment, simplification, reuse, and control.

Approach

The new chief data officer at this major home loan corporation was determined to avoid the mistakes of predecessors who had focused on a pure technology approach and failed to engage the business. She, along with the executive team, saw data as a vital part of the organization’s future. KPMG was appointed to support the organization in developing a new data strategy as well as implementing its many components.

Broadly speaking, the strategy offered a business-centric vision of empowerment, simplification, reuse, and control of critical business data. A central tenet was to ensure anyone could find the critical data they needed quickly and easily, without having to rely on what they called “friends and family” networks. This included consolidating business definitions in one place, eliminating duplicate or poor-quality elements, and introducing processes and controls to help ensure it was easier to maintain data quality consistently across the organization. Finally, KPMG and the company worked together to clarify the rules, structure, and guidance for the use of data.

Another principle of the transformation was that data would be governed and controlled in a way that was fit for purpose, rather than assuming “one size fits all.” This meant highly critical data (such as SOX and regulatory data) had greater structure, transparency, and control, while less critical data could be used with more flexibility to allow for innovation and experimentation.

Adopting a new operating model around data required cultural change and a transformation mind-set. Constant and consistent communication were key. KPMG helped develop an internal brand for their transformation effort, helping employees think differently about data and their roles as producers and consumers of it. The brand has been an important ingredient in helping the workforce link investments in data with associated business value.

KPMG insights

Identify root causes

Problems that might appear to be about data may be rooted in broader cultural issues. This means a focus on process, technology, or control alone won’t release the full value of data. Data needs to be seen as a vital business driver that is anchored in a wider understanding of the business strategy and its objectives.

Manage change

The transition to a more value-driven and sustainable data focus doesn’t happen overnight. As with any major transformation, forward planning is essential to success, along with constant, consistent communication and a focus on engaging the workforce in owning and managing data.

When employees began to share, reuse, and trust each other’s data, certainty around the loans the company was guaranteeing grew.

 

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