Is Your Company Ready for a Fractional Chief Data Officer (CDO)?

Is your Financial Services Firm facing these challenges?

Are you a mid-size Australian financial services firm without a CDO, but facing challenges such as:

• has valuable data assets scattered across siloed systems with no cohesive strategy to leverage them effectively?

• needs to implement advanced analytics and AI solutions but lacks the data and AI governance framework to support them?

• wants to monetise data assets but is concerned about privacy regulations and ethical implications?

• is struggling to meet APRA's data management requirements and other regulatory reporting obligations?

• has outgrown your current data management structure but can't justify a full-time CDO?

• needs to develop a comprehensive data strategy that balances innovation with privacy, security, and compliance?

• requires expert guidance for implementing data quality frameworks that support regulatory requirements like CPG 235 and BEAR/FAR?

If you've answered 'yes' to any of these questions, a fractional CDO could be the strategic solution your organisation needs.

What is a Fractional CDO?

Simply put, a fractional CDO is an experienced data executive who provides strategic data leadership on a part-time or project basis. Think of it as having a seasoned CDO on your team, without the full-time commitment. In the heavily regulated financial services sector, this expertise is especially valuable.

What would hiring a Fractional CDO mean for me?

For CEOs

As a CEO, your focus is on overall business strategy and growth. A fractional CDO provides:

• Data-driven insights that inform strategic decision-making and reveal new market opportunities

• Monetisation strategies for your organisation's valuable data assets

• Risk mitigation for data-related regulatory compliance issues

• Executive-level communication translating complex data concepts into business value

The value of digital and AI is real and sizeable. Evidence suggests that companies that have leading digital and AI capabilities outperform laggards by two to six times on total shareholder returns (TSR) across every sector analyzed. McKinsey, Rewired and running ahead, 2024

For COOs

Operations leaders in financial services benefit from a fractional CDO through:

• Streamlined data collection processes that reduce manual effort and error rates

• Enhanced operational visibility through integrated data dashboards and reporting

• Improved customer journey mapping based on comprehensive data analysis

• Data quality frameworks that ensure operational decisions are based on reliable information

• More time to focus on core operational priorities while data strategy is expertly managed

CDOs contribute to 7% higher revenue growth than peers. IBM Institute for Business Value, 2024

For CFOs

Financial leaders gain significant advantages from partnering with a fractional CDO:

• Enhanced financial forecasting through advanced predictive analytics

• Improved cost allocation models based on accurate data utilisation metrics

• Better risk quantification through comprehensive data analysis

• Reduced regulatory reporting costs through automated data management processes

• Data-driven insights for more effective resource allocation

72% of Australian and global companies are using AI in their financial operations. Two-thirds of business leaders saying ROI is exceeding or at least meeting, their expectations. KPMG, 2024

For CIOs

Technology leaders can form a powerful partnership with a fractional CDO, creating benefits including:

• Clear separation of technology and data/analytics responsibilities

• Improved alignment between technology investments and data value creation

• Enhanced data architecture that complements and extends the existing technology stack

• Expert guidance on data platform selection and implementation that meets both business and technical requirements

• Collaborative approach to data security that strengthens your overall cybersecurity posture

• Specialist expertise in emerging data technologies like real-time analytics, AI/ML platforms, and data architectures

On average, a bank spends about 6 to 12 percent of its annual technology budget on data. With the right data architecture archetype, banks could cut their implementation time in half and lower costs by 20 percent. McKinsey, February 2025

For CROs

Risk management is paramount in financial services. A fractional CDO helps CROs by:

• Establishing robust data governance frameworks aligned with APRA's CPG 235 requirements

• Implementing data lineage capabilities that support regulatory audit requirements

• Developing comprehensive data classification systems to appropriately manage sensitive information

• Creating automated compliance monitoring solutions based on reliable data sources

• Enhancing fraud detection through advanced anomaly detection algorithms

"In an environment of rising cyber crime, increasingly valuable consumer data, and a maturing regulatory environment – forming a strong chain of data governance, underpinned by trust, appears to be a very necessary capability." Rob Hanson, CSIRO / Governance Institute of Australia

Is a Fractional CDO the Right Fit for Your Organisation?

In my experience, mid-size Australian financial services organisations benefit most from fractional CDO arrangements. These businesses have complex data needs but may not require or be able to justify a full-time executive data leader.

Typical engagement models include:

• 1-3 days per week ongoing strategic data leadership

• Full-time engagement during critical data initiatives or regulatory remediations

• Monthly advisory services combined with on-call availability for AI and data governance committees

• Transitional leadership during implementation of major data platforms or analytics capabilities

The flexibility of these arrangements allows you to scale data leadership based on your current needs and growth trajectory.

The Path Forward

In today's data-driven financial services landscape, having the right data leadership isn't just about managing information—it's about transforming your data into a strategic asset that drives business value while meeting increasingly complex regulatory requirements.

A fractional CDO might be exactly the advantage your organisation needs to thrive amid regulatory complexity, increasing data volumes, and the growing importance of analytics-driven decision making.

Find out more

Would you like to explore if a fractional CDO could benefit your organisation? Contact us today for a no-obligation discussion about your data challenges and opportunities.