Digital Matrix Systems: Unified Data Streams for Quality Decision-Making

David Graves, EVP, Digital Matrix SystemsDavid Graves, EVP
In its three-decade history of serving the banking industry, Digital Matrix Systems (DMS) has chronicled a transformational journey. Starting as a hardware innovator, the company evolved into a banking analytics software development company. DMS currently serves a prominent clientele of top-ranking financial services institutions. To empower data-driven decisions, DMS helps its clients identify and prepare their data for access and analysis.

New technologies and the growing prevalence of mobile banking have increased the data elements that financial institutions need to evaluate in support of risk management, marketing, and other analytic-driven business functions. However, the lack of resources and expertise in these areas can cause both large and small banks to lose ground to their competitors. Some are outsourcing to meet the immediate need for speed and scalability, but these outsourced platforms don’t facilitate application integration and interconnectivity. For these platforms to capture analytic data and provide valuable business intelligence, it is imperative that they are integrated with data sources and ancillary services. “That’s where DMS comes in,” says David Graves, EVP, DMS. “We take on the responsibility of interconnectivity, regardless of the processing platform and return the data in a value-added manner.”

At the outset, DMS begins by facilitating connection with multiple data vendors via a “hub” of data sources from DMS known as Data Access Point. Data Access Point is an enterprise-level solution that interfaces between multiple lines of business, loan origination systems, and external data sources. With constantly updated data sources, banks can benefit from access to a centralized data repository and perform analytics that can be shared across the enterprise, anytime in the customer life cycle.

We take on the responsibility of interconnectivity, regardless of the processing platform and return the data in a value-added manner

“By connecting with dozens of data suppliers, we are able to provide standard attribution, testing facilities, warehousing, and data processing customizations for our clients,” explains Graves. DMS then applies a consistent methodology for data preparation by standardizing the data layout as much as possible. If needed, the data is normalized to enable decision-making systems to consistently interpret the data, without the need to convert multiple fields, perform look-ups or maintain conversion tables.

To facilitate error-free decision-making from the processed data, banks need to ensure that unexpected or incorrect information is not interjected into the decision process, resulting in fluctuating scores, adverse selection incidents, and increased delinquencies. In an effort to help banks decrease the risk rate, DMS runs real-time quality checks that can be summarized on desired frequencies or key data triggers.

Complex problems require creative solutions to resolve. To cite an example, Graves illustrates an event when a client was struggling with four different data origination platforms. Each system had different credit bureau connectivity lines and workflows, as well as different decision processes. DMS developed a centralized Transaction Interceptor product that communicated with each system. This abstraction layer allowed DMS to intercept each transaction, pull the requested report and enforce a custom scorecard. The project was tested and implemented in an expedited timeline and proved well beyond the bank’s efficiency expectations.

DMS recognizes that millennials and smart devices are shifting the way institutions interact and has plans in place to help clients remain competitive. “We are enhancing our solutions to support Know Your Customer (KYC) monitoring and IoT/Telematics data that is pulled from connected homes and cars,” states Graves. DMS attributes its successful evolution to quality customer service paired with technological innovations.