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The goal is to turn data into information, and information into insight.
The banking and financial services sector has gone through unprecedented change in the last few years, writes Paul Garel-Jones. Now Customers are expecting a more personalized service from their banks however Regulators have reacted to the credit crunch with significant changes to regulation with more intrusive and granular supervision. At the same time, according to the EMC-sponsored IDC Digital Universe study, the world’s data is doubling every two years with 1.8 trillion gigabytes expected to be created in 2011.The Banking service sector is burdened with stringent regulations, changes and uncertainties. They need to reduce risk, cut costs, retain customers and reduce losses while complying changing laws and regulations. Economic turmoil, demanding customers, and regulatory pressures are constant challenges to the banking and financial services industry. In its worldwide business analytics services forecast (published September 2014), International Data Corporation (IDC) forecasts business analytics services spending will reach $89.6 billion in 2018 and $51.6 billion in 2014, representing a 14.7% compound annual growth rate (CAGR).
Analytics will take center stage as the volume of data generated by embedded systems increases and vast pools of structured and unstructured data inside and outside the enterprise are analyzed. Organizations need to manage how best to filter the huge amounts of data coming from the Internet of Things, social media and wearable devices, and then deliver exactly the right information to the right person, at the right time. Analytics will become deeply, but invisibly embedded everywhere. Gartner, 2014
The opportunity for the sector is to unlock the potential in the data through analytics and shape the strategy for business through reliable factual insight rather than intuition. Recognizing that data is a significant corporate asset, a number of organizations are appointing chief data officers following pressure to police the integrity of the numbers as last year’s Economist.
The volume of information filling your servers has reached unprecedented levels. With keen insights, big data analytics can pull treasure out of data piles. A challenge for the industry is, therefore, how to use the breadth and depth of data available to satisfy more demanding regulators, but also improve services for customers.
The ability to use quantitative data to shape decisions and outcomes has become a key source of competitive advantage over the past decade. Yet, for many banks, data remains an underused and under-appreciated asset. As customers demand more qualified information and expect more personalized experiences, it is critical for banks to be able to segment clients based on needs, channel propensity and potential value.
By leveraging data analytics, Key Bank can better understand customer preferences behaviors and deliver tailored offers, services and solutions. Amy Brady Chief Information Officer at Key Bank, a unit ot KeyCorp (US)
Banking and Financial Institutions can leverage ‘Data Analytics’ Services to:
– Enhance customer acquisition, retention and cross-selling.
– Optimize pricing structures
– Gain customer insights through integration with relationship management architecture
– Implement real-time event management to improve contact rates and redemption rates.
“Data! Data! Data! I can’t make bricks without clay!”
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