There’s a common misperception that bankers are risk averse. In fact, the opposite is generally true. Banking is all about risk. Effectively managing the risk of various bank functions, from lending to liquidity management, is how banks make money.
What bankers hate is uncertainty.
Risk is measurable, predictable, and can be accounted for in any number of ways, such as the rate a bank offers for a loan, or the duration of a wholesale funding purchase. But uncertainty is unknowable, incalculable, and stems from not having enough information, or not having faith in the accuracy of that information.
Uncertainty comes in many varieties in banking. Some of this uncertainty is unavoidable, like economic uncertainty. After all, it’s virtually impossible for anyone to guess how the economy is going to perform from one year to the next, although plenty of people offer up opinions (some better than others).
However, there are other types of uncertainty that can limit a bank’s performance, but that can also be remedied with the right tools and techniques. And that’s where the value of establishing a Single Source of Truth for bank data comes in.