Regulation is no longer just about policies, paperwork and audits. It is increasingly about data.
If your organization needs to meet requirements such as the Basel Committee on Banking Supervision’s Principles for effective risk data aggregation and risk reporting (BCBS 239), the General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA) or new environmental, social and governance (ESG) expectations, you need to show that the data behind your controls is accurate, complete and reliable. It is not enough to have controls in place. You also need to prove the data supporting them can be trusted.
That is why data quality is no longer a back-office technical task and is becoming a core regulatory control.
Why regulators are looking more closely at data
Regulators are asking tougher questions:
- Can you trace reported figures back to source systems?
- Can you show that data is consistent across different platforms and teams?
- Can you spot and fix errors quickly?
- Can you explain how data moves, changes and is used?
These questions matter because weak data creates real regulatory risk. Inaccurate financial reporting, incomplete customer records and poor visibility across systems can all undermine compliance efforts, including know your customer (KYC) and anti-money laundering (AML) processes.
Why a reactive approach no longer works
Many organizations still handle data quality reactively. When a problem appears, one team fixes it. But without a broader approach, the same issue often appears again in another system, process or team.
Today, you need to build data quality into the full data lifecycle. That means monitoring data continuously, applying consistent rules, and automating validation, cleansing and enrichment wherever possible. It also means making every step visible and explainable.
Benefits of turning data quality into a control framework
When you treat data quality as a control, you move from reacting to issues to preventing them.
That shift helps you:
- Reduce compliance risk
- Produce more consistent, audit-ready reporting
- Improve trust in the data used across your business
- Respond faster to regulatory questions
It also helps your teams spend less time correcting problems and more time acting on reliable information.
How Experian helps your build trust in your data
Experian helps organizations put data quality into practice as a structured, repeatable control framework.
With Aperture Data Studio, you can profile and explore complex data, uncover anomalies and spot hidden relationships across systems. That gives you a clearer starting point, especially when legacy platforms and silos make it hard to see what is really happening in your data.
Aperture Data Studio allows you to define and apply standard rules that support regulatory expectations. Instead of relying on manual checks or disconnected processes, you can monitor data continuously and produce consistent, audit-ready outputs.
- Improve accuracy at scale
Reliable reporting starts with reliable inputs. Trusted data quality helps you cleanse, standardize and enrich data at scale, including capabilities such as address validation, deduplication and data enrichment. That helps you keep customer and operational data accurate and consistent. In areas such as AML and KYC, even small improvements in data accuracy can make a big difference. You can reduce false positives, improve risk detection and strengthen compliance processes overall. - Create a clearer view of customers and counterparties
Many regulations depend on having one accurate view of a customer, counterparty or exposure. Matching and entity resolution capabilities help you connect fragmented records across systems with greater precision. That makes it easier to spot relationships, reduce duplication and avoid missing the links that matter most. - Make your controls easier to explain
Strong controls need strong visibility. Regulators expect you to explain how data is created, transformed and validated. To accomplish this, you’ll need data lineage and governance capabilities that help you document rules, transformations and controls clearly. That visibility makes it easier to answer regulatory questions and demonstrate confidence in your data processes.
Compliance is only part of the value
Better data quality does more than support compliance. When your data is trusted, you can make decisions faster, reduce manual effort and improve the experiences you deliver to customers. What starts as a regulatory requirement can quickly become a business advantage. In other words, data quality does not just help you stay compliant. It helps you work smarter and compete more effectively.
As regulation evolves, organizations need to see data for what it is: the foundation of compliance. By identifying critical data elements, setting clear quality standards and monitoring data continuously, you can turn data quality into a stronger control. With the right tools in place, that control can scale with your business.
Data quality is no longer just a supporting function. It is becoming one of the clearest ways to build trust, improve resilience and turn compliance into competitive advantage.
Get in touch with a data expert to explore how Experian can help your organization.
See what Experian customers value most about our data quality solutions and why ROI, account management, and bundled services stand out.
In today’s digital-forward society, you can’t avoid the growing importance of data—especially in the realm of business. Regardless of an organization’s size, industry, or business model, you can’t plan for optimal growth and success without also discussing data. A mature approach to data can help businesses build greater trust in their information, make more informed decisions, and use data more effectively across the organization. But what exactly does it mean to achieve data maturity, and how can you determine whether your business needs to optimize its approach to data? Below, we’ll delve into what data maturity truly entails while helping you discover where your business lands on this scale. What is data maturity? In the business world, data refers to any information an organization collects surrounding its customers, workers, marketing plans, and organization at large. But if data is the information collected and processed, what exactly is data maturity? Put simply, data maturity refers to the extent to which your business can collect valuable data, derive meaning from it, and leverage this information in the decision-making process. Your business’s data maturity is determined by how your organization’s data is: Processed Analyzed Utilized It’s important to note that the quantity of data does not directly correlate to the maturity of the data in question. The goal is to strive for quality data collection that helps an organization successfully make the best marketing and operational decisions possible. At Experian, we track three key components that make up data maturity: Strategy: We look at the processes behind data management, from implementing data quality control measures to sharing insights with a wider range of roles. People and skills: We take note of data ownership, considering whether there is a chief data officer in place and who manages insights across the business. We believe that data skills are becoming increasingly important, whether an organization has a data literacy program or is hiring for data skills. Technology: We look at an organization’s tech stack, data quality management functionality, and how user-friendly the software is. Depending on the organization’s data skill level and resources, technology can make or break the data experience. The three elements live across the four levels of data maturity, which we discuss in the next section. The 4 levels of data maturity—how data mature is your business? Below, we’ll delve into the four stages we use to assess data maturity that can serve as a benchmark for how your business is performing from a data quality standpoint. 1. Under-developed If you’ve never really put much thought into your business’s data and find that data at large has never been a topic of discussion in your organization, you’re likely to find yourself starting from square one. At the base level, organizations that lack an understanding of data quality and its implications fall into an under-developed category. If you notice your organization confronting data quality issues, manually fixing data problems as they arise, and having an inconsistent understanding of data across the business, you may fall into this category. For organizations at the under-developed stage, establishing a more intentional approach to data management can create a stronger foundation for future progress. Identifying existing data quality challenges, defining ownership, and introducing consistent processes can help your organization begin moving toward greater data maturity. Reaching out to a data management expert can also be a helpful place to start. 2. Reactive Maybe your organization has started to think about data and its importance within your business, but it hasn’t laid the foundation for the proper metrics or processes necessary to utilize this information in a meaningful way just yet. As the name indicates, a “reactive” business reacts to data when issues arise and need to be fixed. However, discussions surrounding data aren’t evenly spread throughout the business. While tackling data quality issues in silos is a start, it’s crucial to expand the data experience throughout your organization. This means that if only certain departments have the tools and knowledge necessary to leverage data insights, it’s important to expand data access and training to those outside of traditional IT roles, too. 3. Proactive Moving along the data maturity scale, businesses are likely to achieve a proactive state once they’ve established clear data quality success metrics that help them make better use of their data across the board. Within this level, there’s a more universal knowledge of data across the organization, which helps team members use data in meaningful ways when performing their daily tasks. There’s also an increased emphasis on data discovery, which places the organization a tier above “reactive” businesses that focus more heavily on root cause analysis. If you think your business identifies with a proactive level, you may still confront issues surrounding data trustworthiness and optimal data governance. Investing in a trusted data management program could be the next step in your journey toward higher data maturity. 4. Optimized At the highest level, businesses with the greatest data maturity have established an advanced data extraction and interpretation strategy to reap more business value from their data. An organization in this category has successfully: Established advanced data quality measuresCreated confidence in the quality of its dataInvested in the right data professionals to oversee company-wide data assetsIncorporated data quality monitoring into everyday operations While it may seem like achieving a high level of data maturity is the endpoint, it’s important to note that data management is an ongoing process. Businesses at an optimized level can still benefit from improving their data management programs over time to reduce costs and automate more of their daily processes. If you’re still not sure where your organization lands on the data maturity scale, we’ve put together a free assessment that can help you get a better idea of where you stand so that you can begin taking the steps necessary to strengthen your approach to data. My business isn’t as data-mature as I thought: What now? Regardless of where your business lands on the data maturity scale, your business could still benefit from enhancing your data’s trustworthiness and developing new data quality strategies as time progresses. Data isn’t stagnant, so your data strategy shouldn’t be, either. In the modern world of business, data has become a competitive asset, and what you do with the information you collect matters. At Experian, data is top of mind for every decision we make. When you reach out to a team member, one of our data quality experts can connect you with the resources you need to kickstart your data maturity journey. Unlock the importance of data in your business Building greater data maturity can help your organization get more value from its data and create a stronger foundation for informed decision-making. Data quality and governance should remain important considerations for your business—regardless of your organization’s industry, size, or overarching goals. As you plan for the future, evaluating your current data management practices can help uncover opportunities to strengthen how data is managed, trusted, and used across the organization. Explore how strengthening data quality and data management can help your organization advance its data maturity journey and make data a more valuable part of future business planning. Fill out the form to connect with an expert:
Address verification is the process of determining whether an address is accurate and properly formatted while it also gives valuable data about the address. This process saves time and money by offering accurate data using information from the USPS and international carriers, including whether each address is categorized as a business or residential address. Businesses that utilize address verification tools are able to provide information directly to their customers with confidence, avoiding extra fees and returned mail. Address verification and the important data related to it allows businesses to make more informed and cost-effective decisions throughout their mailing campaigns. Altogether, address verification is a key tool in effectively reaching customers and having an accurate picture regarding shipping expenses, and businesses should know how to use address verification to their advantage. What is the difference between business addresses and residential addresses? When it comes to shipping, business addresses and residential addresses are viewed differently by mail carriers. Businesses should be aware of these differences before planning a mailing campaign or delivering to customers. The costs of shipping can vary based on the type of address to which you’re sending. In fact, private shippers may charge an address correction fee if an address has been wrongly identified as a residence or business. From the perspective of a mail carrier, business addresses are more convenient to deliver to as they are usually located closer together in dense commercial areas. This allows carriers to deliver more packages in a shorter amount of time. Alternatively, residential addresses are typically more spread out, using more time and taking carriers away from their high-density delivery route, which usually raises shipping costs. As a result of the differences in mailing between the two types of addresses, it is crucial that businesses have accurate data in their system. This data allows them to understand where each mailing is being sent in order to avoid unwanted fees and make sure that each one reaches its target. How different carriers classify residential addresses All mail carriers categorize addresses as either residential or business addresses. However, the criteria used to define a residential address can differ depending on which mail carrier you use. This means that although an address may be considered residential by the USPS, it may not be considered residential by a private mail carrier. The USPS designates each address as either residential or business based on the purpose of the address. Regardless of the location of the address, the USPS focuses on whether or not the address itself is home to a business or a residence. When mailing through the USPS, shipping costs are the same regardless of which address type you are shipping to. On the other hand, private carriers rely on city zoning for designating addresses. This means that for private carriers, the actual purpose of the address is unimportant. If a business is located in a zone that is used primarily for residential purposes, then the business will be categorized by the carrier as having a residential address. Because private carriers charge higher fees for residential addresses, in these instances, businesses may need to anticipate paying a higher cost for commercial shipping in these zones. What is a Residential Delivery Indicator (RDI)? Residential Delivery Indicator (RDI) identifies whether an address is categorized as residential or commercial. RDI is a data type sourced and shared by the USPS. The USPS makes this data available to address verification tools for the sake of rate shopping and analysis. What is Record Type? Record Type is another descriptor provided by the USPS to give more information about an address. USPS uses Record Type to specify an address type further, providing information about the type of residence or business by using more specific categories. Record Type Includes the following values: “F” = Firm or business“G” = General delivery“H” = High-rise“P” = PO Box“R” = Rural route or highway contract route“S” = Street Using the RDI and Record Type codes help you understand what kind of address you are sending to, and this can sometimes help you save on costs for shipping and mailing, while also giving you a sense of the mix of addresses where your business delivers its goods. Experian’s address verification tools give your business access to both RDI and Record Type in each dataset so that you can have a complete picture of the addresses you are sending to. Benefits of identifying a business address vs. a residential address Maintaining a database that accurately identifies residential and business addresses is a crucial part of any mailing strategy. By having access to accurate and up-to-date data, your business can boost its performance in the following ways: Have a more informed mailing strategy Information obtained from the address verification process, like RDI and Record Type, allows your business to gain more insight about customer locations, delivery tracking and more efficient shipping routes. An optimized shipping route will shorten delivery time, reduce shipping costs and create more satisfied customers. An informed and effective mailing strategy helps your business stay connected with customers and ultimately increases sales. Reduce return mail Using address verification tools gives your business confidence that your mail will be delivered the first time. Returned mail translates to lost time, materials and money. Managing return mail also takes more energy for employees who need to correct and sort it. A database complete with accurate and valid addresses will help you make sure that you have the correct address and that you pay the correct shipping costs for the type of address you are sending to, preventing return mail and protecting your investment. Increase your marketing impact When you are confident that your materials will reach their intended target, you can be assured your message will be received. Businesses that verify addresses will see a higher return on investment for marketing materials as they know which clients they are reaching and are less likely to receive returned mail or pay for address correction fees. Sending the right message the first time allows your marketing to reach clients without losing money on avoidable fees or errors. How to use address verification to verify a business address Experian’s address verification tools allow you and your business to verify each address so that you know where your packages and other mailings are going. With accurate data, your business is able to avoid address correction fees, reduce returned mail and properly connect with customers. Our address verification solutions help you improve customer experience, reduce costs, and boost business performance. Fill out the form to learn more:
