Case Study

High-yield data: How a global investment bank implemented MDM and recaptured $75M in annual revenue

The short version

Challenge:

A Tier 1 investment bank faced fragmented client data across multiple systems, resulting in €50M in regulatory fines and delayed onboarding that cost $100M+ annually in lost trading revenue.

Solution:

DataCatalyst implemented an industry-specific MDM platform supported by NLP capabilities and graph databases to create golden client records, delivering a unified source of truth for client data.

Results:

Client onboarding accelerated from 14 days to 48 hours, recapturing $75M in annual revenue, achieving 100% MiFID II compliance, and reducing false-positive AML alerts by 30%.

The challenge: Regulatory fines and revenue loss

A Tier 1 investment bank operating in global capital markets was struggling with severely fragmented client data spread across multiple systems, including KYC (Know Your Customer), CRM, Onboarding, AML (Anti-Money Laundering), and risk management platforms.

This fragmentation created a chaotic data environment that lacked consistency and reliability. The bank’s Head of Customer Data, caught between business demands and technology limitations, could see that these data issues were causing serious operational and regulatory problems across the organization.

The disjointed nature of client information had already resulted in substantial regulatory penalties, including €50M in MiFID II fines and US MRIAs. Without a unified view of their clients, the bank was unable to effectively demonstrate compliance with increasingly stringent financial regulations.

The need: Single source of truth for client data

The bank urgently needed to address several critical issues stemming from their fragmented client data:

  • Inefficient manual processes: Teams were forced to manually reconcile Legal Entity Identifiers (LEIs), Ultimate Beneficial Owner (UBO) data and system-specific customer IDs across various systems, creating significant inefficiencies and introducing errors into critical compliance processes.

  • Extended onboarding delays: The lack of understanding around information needed at customer signup, based upon financial instruments traded and the type of customer, was creating significant delays in Credit and Legal during client onboarding. An average of 14 days of back and forth with customers: an eternity in the fast-paced capital markets environment.

  • Substantial revenue losses: These onboarding delays translated directly to the bottom line. The bank estimated over $100 million annually in lost trading revenue as new clients couldn’t be efficiently brought onto the platform.

  • Regulatory compliance failures: Errors in FATCA/CRS reporting were triggering additional regulatory scrutiny, threatening further penalties and reputational damage.

  • No single source of truth: The bank needed to establish a unified, authoritative source for client data to meet regulatory requirements globally, improve operational efficiency, and support strategic business initiatives.

Previous internal attempts to address these issues through manual reconciliation, workflow adjustments, and point solutions for specific regulations had failed to solve the fundamental data problems. As regulatory fines mounted and revenue losses continued, the bank recognized the need for specialized expertise in enterprise data management.

The approach: Proven methodology to deliver fast business value

DataCatalyst deployed a lean team of seasoned experts to work closely with the bank, following our proprietary Accelerate methodology that emphasizes business-driven requirements and iterative value delivery. Our approach began with a thorough analysis of the current data architecture and processes.

Rather than proposing an unwieldy solution that would take years to implement, our team worked collaboratively with stakeholders from both business and IT departments to design a targeted approach focused on delivering rapid, measurable value. We prioritized a Minimum Viable Product (MVP) implementation that addressed the most critical pain points first, with a clear roadmap for future enhancements.

Our business-driven approach ensured that requirements were directly tied to the bank’s strategic objectives and operational needs, rather than being defined by technology constraints. This alignment was crucial for ensuring user adoption and realizing business value.

The solution: Industry-specific MDM platform with advanced technologies for regulatory compliance

DataCatalyst designed and implemented a comprehensive solution leveraging industry-leading technologies and our deep financial services expertise:

  • Unified MDM platform: We deployed an industry-specific Master Data Management platform to create and maintain golden client records that served as a single source of truth across the organization.

  • Intelligent integration: The solution seamlessly integrated data from onboarding systems, KYC and AML systems, and global sanctions lists, eliminating silos while maintaining data lineage.

  • Advanced technology: We implemented Natural Language Processing (NLP) capabilities to automatically extract LEIs and mandates from unstructured PDFs, dramatically reducing manual data entry and associated errors.

  • Relationship mapping: Utilizing graph databases, we created visual maps of complex counterparty hierarchies that exposed previously hidden exposures and relationships.

  • Automated compliance: We developed automated workflows that generated data for MiFID II-compliant trade reports directly from the golden record source, eliminating manual reconciliation.

Our lean, purpose-built team of data experts combined management consulting acumen with deep technical knowledge to deliver this solution efficiently and effectively. Unlike larger firms that might deploy dozens of less experienced consultants, our “gray-haired SWAT team” approach meant that every team member brought valuable expertise to the project, ensuring faster delivery and superior results.

The transformation: Shifting from siloed data to an enterprise-wide approach

Implementing this transformative solution required significant changes in how the bank approached data management:

  • The organization shifted from a siloed approach to an enterprise-wide perspective on client data
  • Staff were trained on new systems and processes, with a focus on business value and efficiency
  • Established workflows for client onboarding and data management were redesigned and optimized
  • Potential resistance to change from different departments was addressed through clear communication of benefits and executive sponsorship
  • New technology was integrated with existing systems to provide a seamless experience

Through an approach that emphasizes clear communication, thorough documentation, and business-driven priorities, our experienced team anticipated challenges and proactively addressed them. This ensured a smooth transition with minimal disruption to ongoing operations.

The results: Faster client onboarding and better regulatory compliance

The implementation delivered remarkable, measurable results within a compressed timeframe:

  • Client onboarding time was reduced from 14 days to just 48 hours. The bank projects recapturing $75M in annual trading revenue that had previously been lost to delays

  • The bank achieved 100% MiFID II compliance on trade transparency reports, avoiding €50M in potential future fines

  • The solution led to 30% fewer false-positive AML alerts through cross-referenced sanctions data, improving efficiency and reducing operational costs

These results demonstrate the power of DataCatalyst’s approach: focusing on business value, deploying lean teams of experienced experts, and using our Accelerate methodology to deliver tangible outcomes quickly and efficiently.

The future: Sustainable data management and competitive advantage

This successful data transformation has positioned the bank for long-term success and competitive advantage:

  • The bank now has a sustainable approach to data management that can adapt to changing regulatory requirements, providing ongoing protection from compliance risks

  • The single source of truth for client data enables superior client service and relationship management, strengthening key client relationships

  • Improved data quality and availability support more effective risk assessment and business intelligence, informing strategic decision-making

  • Future regulatory changes can be addressed efficiently with the flexible data foundation, reducing the cost and effort of compliance

  • The transformation has fostered a more data-driven culture with greater trust in information across the organization

  • The bank is now positioned to leverage advanced analytics and AI for further competitive advantage, with a solid data foundation to support these initiatives

The project continues to deliver value as the bank evolves its data strategy and capabilities to thrive in an increasingly dynamic business environment.