The essential ingredients to maximize customer data

How can you make the most of the opportunity that data presents?

Sibos 2016 informed us that when it comes to data, the more, the better. The premier financial services event, hosted in Geneva this year made us look at the ingredients list for a successful business - it becomes clearer every day that a one-time pinch of data has amassed into three table-spoon servings at a time - with an extra load thrown in for good measure.

Data-driven banks find themselves in an advantageous position as they boast better services and informed customer experience strategies because of the information on their customers, their habits and their financial positions, they hold. But – and it’s a big but – the industry still can’t effectively use it to build meaningful insights.

It’s the cake that’s failing to rise, as it were, because although they have all the right ingredients, they are failing to mix and fold them in the right quantities.

To blame is the legacy structures of banks. Inside, they operate in siloes and entire departments largely ignore each other as key information remains cordoned off across an institution. This isn’t new news, of course. Regulation and customer demands are acting as mentor cooks, encouraging players to produce consolidated risk reporting across the enterprise, promoting transparency internally and externally, with a view of using their data stores for good.

Consolidated data warehouses connected to important data governance policies are being built with a focus on integrity and quality proving that the industry is taking this opportunity seriously. Banks understand that this provides better insights, richer analytics and an innovative output as the cherry on top.

But their recipes will need to constantly adapt if they wish to innovate in the future.

This year, statistics introduced at Sibos informed participants that 90% of the world’s data has been created in the last two years, a rate increasing alongside an interconnected world; the data management solutions market is expected to grow at a compound annual growth rate of 12.8% between now and 2021. A guaranteed crowd pleaser.

And how did Sibos react?

With sweetened taste-buds, members, forgetting for the moment banks’ supposed lack of invention, showed signs of progressive thought, exploring ways of using data beyond simple payment services and customer transactions, and in new areas such as the fight against terrorism. The relationship between social media and analytics was scrutinised to show how myriad results, from stock prices to political predictions, could be measured as well.

The potential of data management strategy components have excited Sibos, and the surrounding industry. On its own though, data is not enough. It needs the right equipment to mould it into shape, the correct ba(n)king conditions, and continued investment, care and attention so customers receive the best products based on informed decisions.

Does your business have all the ingredients to create a successful data strategy in 2017? To find out, and read more insights from Sibos.