Achieving interoperability within banking systems is increasingly necessary to maintain a competitive edge amidst regulatory challenges, market shifts, and interconnected risks. Data interoperability offers benefits such as faster decision-making, reduced costs, and improved data quality. However, banks encounter cultural and structural challenges in these endeavors.

The divide between departments like sales, risk, and compliance causes inefficiencies. Data silos hinder a holistic view, leading to inconsistent risk assessments. When cyber risks are not promptly shared across functions, vulnerabilities increase. Integrating data can improve risk assessments and real-time insights, aiding in the management of interest rate volatility and other risks.

Structural inefficiencies, including fragmented systems and inadequate data management, demand multiple manual interventions, raising operational risks. Investing in technologies for seamless data provides operational efficiency and reduces errors. One example is managing risk-weighted asset overlays, impacting profitability. Maintaining quality data from capture throughout its lifecycle is crucial.

Treating data as a product enhances integration across systems. Standardized data packages improve efficiency and growth strategies. Implementing entity verification and master data management creates consistent data assets, assisting compliance and customer satisfaction. Strategies like the "keyring approach" link data across silos without full integration, minimizing compliance risks.

Steps for adaptation include assessing data maturity, prioritizing critical data, and developing phased implementation plans. Partnerships with specialized solution providers can accelerate these processes. Moody’s highlights the importance of robust data management and interoperability to leverage AI technologies effectively.

By addressing challenges and investing in data management, banks can achieve interoperability and maintain a competitive edge in the financial landscape. Moody’s leverages data and experience to support banks aiming for confidence in their operations.

Banks are encouraged to attend the Summit 2025 to connect with experts and explore banking transformation opportunities.