Data Governance in Financial Services: Leveraging Microsoft Purview for Compliance and Risk Management
The stakes for effective data governance couldn’t be higher in 2025. Financial institutions manage some of the most sensitive personal and corporate data, from Social Security numbers and account balances to investment strategies and trading algorithms. Failing to govern this data appropriately not only exposes institutions to regulatory penalties but also erodes customer trust and increases operational risk.
That’s where Microsoft Purview becomes advantageous. As regulatory frameworks like GDPR, CCPA, and the U.S. SEC’s cybersecurity disclosure rules become increasingly stringent, Purview provides a centralized solution for discovering, classifying, and governing data across hybrid environments—on-premises, multicloud, and SaaS. For financial institutions striving to keep pace with regulatory change while managing growing volumes of data, it offers a future-proof approach to compliance and risk management.
Why Data Governance Matters in Financial Services
The financial industry is one of the most heavily regulated sectors in the world, and for good reason. According to IBM’s 2023 Cost of a Data Breach report, the financial sector has the second-highest average cost of a breach at $5.9 million, trailing only healthcare. The same report found that companies with high levels of data governance maturity detected and contained breaches 28 days faster on average than those without.
Meanwhile, a 2024 Deloitte study found that 74% of financial institutions list regulatory compliance as a top data governance driver, followed closely by the need to improve data quality and reduce operational risk. In this context, good data governance is not just an IT initiative, it’s a strategic imperative.
What Microsoft Purview Brings to the Table
Microsoft Purview is a unified data governance service that enables organizations to manage and safeguard data across their entire digital estate. For financial services firms, it offers:
- Automated data discovery and classification
Purview uses more than 200 prebuilt, sensitive information types to automatically identify and classify financial data across cloud and on-premises environments. - Automated data discovery and classification
Purview uses more than 200 prebuilt, sensitive information types to automatically identify and classify financial data across cloud and on-premises environments. - Unified data map and catalog
Purview helps you maintain a searchable inventory of data assets, making it easier to find and manage sensitive information across departments and jurisdictions. - Unified data map and catalog
Purview helps you maintain a searchable inventory of data assets, making it easier to find and manage sensitive information across departments and jurisdictions.
Best Practices for Data Governance in Financial Services
To get the most out of Microsoft Purview—and to establish a robust data governance program—financial institutions should consider the following best practices:
1. Establish a Data Governance Council
Create a cross-functional team that includes compliance officers, IT leaders, security professionals, and line-of-business stakeholders. This team should define data governance objectives, policies, and accountability structures.
2. Map Your Data Estate
Use Microsoft Purview’s automated discovery tools to gain visibility into structured and unstructured data across your organization. This visibility is the foundation for risk management and regulatory compliance.
3. Classify and Label Sensitive Data
Apply Purview’s prebuilt and custom classifiers to label sensitive data, like customer PII, financial statements, and trade secrets. This ensures that sensitive data is handled according to risk levels and compliance requirements.
4. Integrate with Compliance Frameworks
Leverage Purview’s integration with Microsoft Compliance Manager to monitor adherence to global standards such as PCI DSS, SOX, GLBA, and ISO 27001. This provides actionable insights and helps prioritize remediation efforts.
5. Enable Role-Based Access Controls (RBAC)
Implement RBAC to limit data access based on user roles and business needs. This reduces the risk of data leaks and insider threats, and it aligns with the principle of least privilege.
6. Monitor Data Activities and Set Alerts
Enable activity monitoring for sensitive datasets. Use Microsoft Defender for Cloud integration to trigger alerts for policy violations or unusual access patterns.
7. Establish an Audit Trail
Maintain comprehensive records of data access, classification changes, and policy enforcement actions. This auditability is essential for demonstrating compliance during regulatory reviews.
A Future-Ready Framework
As the financial industry grapples with increasing volumes of data, tighter regulations, and mounting cyber threats, modern data governance tools are no longer optional. Microsoft Purview offers a forward-thinking solution that aligns with both current compliance requirements and the evolving data landscape.
Organizations that adopt a proactive data governance approach with Microsoft Purview not only strengthen compliance and risk posture,they also unlock business value by improving data quality, enhancing decision-making, and accelerating digital transformation.
“Good data governance isn’t just about avoiding fines—it’s about creating a foundation of trust, transparency, and strategic advantage.” – Forrester, 2023
Now is the time for financial institutions to move beyond check-the-box compliance and toward a culture of data stewardship. With Microsoft Purview, the tools to get there are already within reach.
