IMPORTANCE OF ROBUST DATA LINEAGE IN MODERN FINANCIAL SYSTEMS

Abstract

Data lineage, the process of understanding, recording, and visualizing data flow from source to destination, has become an integral component of financial systems. In the financial sector, where compliance, transparency, and accuracy are paramount, robust data lineage ensures traceability, reduces operational risks, and supports regulatory reporting. This paper delves into the significance of data lineage in modern financial systems, explores challenges faced during implementation, presents real-world case studies, and outlines best practices to enhance lineage frameworks. The findings emphasize that robust data lineage is not just a technical necessity but a business enabler that strengthens trust and operational resilience in financial institutions.