Data Lineage in Financial Services

As Cyberhaven state,Data lineage, described as “the process of tracking data as it moves within an organization,” is a method that allows businesses to visualize, understand, and catalog the data they manage. This includes keeping track of where data comes from, who accesses and makes use of it, and the various actions taken with it, such as editing, downloading, and sending files. Traditional data loss prevention (DLP) solutions scan data as it leaves the organization for known risks, whereas data lineage uses information about the data itself to help determine what behaviors put it at risk of being breached or otherwise misused.

There are a myriad of reasons that data lineage is a beneficial tool for a financial services company to take advantage of. Many features—such as data access rights and sensitivity classifications—are easier to implement and maintain when data keeps its classification as it is copied, modified, or shared. Data lineage also allows those handling data governance to keep track of who has access to which sensitive data. The inheritance of these attributes means that teams do not have to expend valuable time and energy with the maintenance of access entitlement.

Data lineage is a critical tool in a number of ways that become amplified when applied to financial services. It is often a requirement for achieving and maintaining compliance with regulatory boards, which are particularly strict in industries like financial services, healthcare, and government. It helps organizations and their security teams to understand and manage risks related to their data and can improve the efficiency of processes related to data by eliminating redundant information and automating certain steps. It also allows businesses to gain a fuller view of their data in order to make better informed decisions.

It is important when implementing data lineage tools to ensure that the processes and the information provided are secure, accurate, and useful. Utilizing data lineage best practices, an organization can make data lineage work efficiently and effectively. First, it is vital to involve business executives and users in data lineage to obtain approval and funding and verify the accuracy and effective use of the information provided. Companies are also suggested to keep track of both business and technical data lineage—that is, high-level information regarding the origins and business use of the data as well as finer details about how the data is modified and integrated.

PJ Bradley is a writer on a wide variety of topics, passionate about learning and helping people above all else. Holding a bachelor’s degree from Oakland University, PJ enjoys using a lifelong desire to understand how things work to write about subjects that inspire interest. Most of PJ’s free time is spent reading and writing. PJ is also a regular writer at Bora.