How Change Data Capture (CDC) is Used in Financial Services
Change data capture (CDC) is a technology that enables the capture and propagation of data changes in real-time. It has become increasingly important in the financial services industry, where the timely and accurate processing of data can make all the difference. In this article, we'll explore some of the ways in which CDC is used in financial services.
Fraud Detection
One of the key areas where CDC is used in financial services is fraud detection. By capturing and analyzing data changes in real-time, CDC can help detect fraudulent transactions before they cause damage. For example, if a customer's account suddenly shows a large transaction that is out of the ordinary, CDC can be used to alert fraud analysts to investigate and take action. CDC can also be used to track changes in user behavior that could indicate potential fraud, such as a sudden increase in transactions or the use of a new device.
Compliance Reporting
Financial services firms are subject to a wide range of regulations and reporting requirements, which can be time-consuming and expensive to meet. CDC can help automate many of these processes by capturing and aggregating data in real-time. For example, CDC can be used to track changes to customer information, such as address or employment status, and automatically update compliance reports. CDC can also be used to monitor transactions for compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Portfolio Management
CDC can also be used in portfolio management to track changes in asset prices, market conditions, and other factors that can impact investment decisions. By capturing and analyzing data changes in real-time, portfolio managers can make more informed decisions and respond more quickly to changing market conditions. For example, if a portfolio manager sees that a particular asset is suddenly showing a large price increase, CDC can be used to alert the manager to take action and potentially capitalize on the opportunity.
Trading Systems
CDC can help trading systems react more quickly to changing market conditions and make better decisions. For example, if a trading system sees that a particular asset is suddenly showing a large price increase, CDC can be used to automatically trigger a buy order. CDC can also be used to track changes in trading patterns or order volumes, which can be used to optimize trading algorithms and improve trading performance.
Conclusion
Overall, change data capture (CDC) is a powerful technology that is transforming the financial services industry. By capturing and analyzing data changes in real-time, CDC can help financial services firms make more informed decisions, detect fraud more quickly, and meet regulatory requirements more easily. Macrometa's financial service solutions support CDC with low latency edge compute and real-time analytics, find out more today by chatting with one of our solution experts.
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