Data lineage tells the complete story of how data within an organization was produced, consumed and manipulated by the organization’s applications. It traces the data’s movement through systems. Banks and other financial institutions that handle customer data must be able to demonstrate that the information which originates upstream, in customer-facing systems, is the same information found in the bank’s risk and compliance systems downstream. This is where data lineage becomes important.
This article defines data lineage and explains why it is so important to financial institutions today, including its role in the recent Part 504 regulation by the State of New York Department of Financial Services.