The 7 Excel Commanders

In the realm of FinTech, where data integrity, security, and compliance are paramount, relying on Excel for critical functions can be risky. Here are seven principles, or "Commanders," to guide your use of Excel in a way that keeps compliance officers at bay.

# 1. Commander of Data Collection

Decree:

Thou shalt not use Excel to Collect Data.

Rationale:

Excel lacks robust features for maintaining an audit trail that a proper Master Data Management (MDM) or Reference Data Management (RDM) system provides. Unauthorized changes could go unnoticed, making it non-compliant for maintaining master datasets. This can lead to significant issues in tracking data lineage and ensuring data accuracy, which is critical in financial operations.

# 2. Commander of Task Management

Decree:

Thou shalt not use Excel for Task or Project Management.

Rationale:

Excel is not designed for real-time updates or collaborative task management. It becomes cumbersome and error-prone for managing projects or tasks, especially with complex dependencies. Using Excel for this purpose can result in missed deadlines, duplicated efforts, and a lack of visibility into project status.

# 3. Commander of Data Mastery**

Decree:

Excel shall not serve as the master repository for data.

Rationale:

Storing critical data in Excel without proper control mechanisms can lead to integrity issues and compliance violations. Excel does not offer the necessary tools for auditability, version control, or change management that are essential for maintaining a 'golden copy' of data in the financial sector.

# 4. Commander of Data Processing

Decree:

Thou shalt not use Excel for Cooking or Processing Data.

Rationale:

While Excel is adept at data manipulation, it is not suited for operational or recurring data processing tasks due to its proneness to human error and lack of scalability. Automated systems or specialized software should handle these tasks to ensure efficiency, accuracy, and the ability to scale with business growth.

# 5. Commander of Data Storage

Decree:

Excel is not for storing Data.

Rationale:

Excel's flat file structure doesn't support the relational integrity or query capabilities of databases. Storing data in Excel can degrade data quality and integrity over time, especially as the volume of data grows or when multiple users need access. For secure, structured, and efficient data storage, databases or data warehouses are far superior.

# 6. Commander of Data Remediation

Decree:

Excel is not for remediating Data.

Rationale:

Excel can be useful for one-off data fixes, but it lacks the systematic approach needed for regular data remediation. Such operations require systems that can track changes, maintain data consistency, and ensure that all data corrections are logged and can be audited, which Excel does not inherently provide.

# 7. Commander of Data Analytics

Decree:

Thou shalt use Excel for Data Analytics, slicing-dicing, data profiling.

Rationale:

Excel is exceptionally suited for data analysis with tools like PivotTables and charts. Its strength lies in the ability to quickly analyze and visualize data for decision-making. However, this should be confined to analysis rather than operational data handling.

By adhering to these seven Excel Commanders, FinTech organizations can mitigate risks associated with using Excel inappropriately, thereby maintaining compliance and operational integrity.

In subsequent blog entries I will drill down into each Commander and give you the way out of Excel.

Please email me to: pedro.castellanos@getridofexcel.com for comments or suggestions.