Since the start of the pandemic, most have found ways to use technology to improve their daily life. As a result, users have come to expect hyper relevance in their digital experiences. Users will select financial institutions that not only know them, but will also proactively provide insights on what they should do next.
In our Gold Standard Series event with Jim Marous, co-publisher of The Financial Brand, and Alkami VP, Product Management, Jeff Chen explored the state of data management in digital banking and examined how financial institutions can deliver on new expectations of convenience. Here are the highlights from their conversation.
Data and analytics are the foundation for success
Digital interactions have become the norm. Now, users expect anytime, anywhere engagement. To meet this demand, future-ready financial institutions (FIs) are already using data, applied analytics, and AI to design intuitive highly precise customer journeys in the digital channel. But can all other FIs catch up and find a way to leverage data and analytics when so much of their data is held in different silos and when their trusted data and outputs are under question?
FIs must use data and analytics to drive the transformation necessary for meeting new user expectations. And not just to improve customer experiences, but to change how organizations work from the inside out. This means that transformation requires more than modern technology; it requires creating new back office processes. Considering the range of changes required to achieve true total transformation, and the role data plays in that, the quality of FIs’ data is an imperative concern, not just for personalization but all decision making.
Winners will provide proactive solutions
If FIs are only using data and analytics to create great reports, they’re missing major opportunities. For instance, data and analytics are changing the face of account opening, aiding the application process by filling in information the FI already knows about the user. Risk, cost savings, revenue, and engagement are other prevalent banking concerns that data and analytics can play a central role in addressing.
Despite the benefits FIs stand to reap by utilizing their data, their ability to execute data-driven initiatives is still hindered. Data maturity (the four stages of which are Data Aware, Data Proficient, Data Savvy, and, the goal, Data Driven) remains low across the banking industry. In a new Digital Banking Report, 75% of respondents said they were not adept at using AI to recommend next best actions for marketing to customers and prospects. For FIs to successfully transform their digital experiences and maintain relevance into the future, they will need to move from Data Aware to Data Driven on the data maturity spectrum.
Challenges to using data are varied
There doesn’t seem to be a widespread problem with FIs having enough data. But there are numerous issues when it comes to using it all effectively. Among the many unknowns FIs face in wrangling and making the most of their data, how to access data and how to gain a unified view of it are FIs top questions. Smaller FIs lack the necessary skills and resources to begin engaging with their data, but these and many other issues can be addressed by collaborating with a solutions provider. This answer to the accessibility question is important, as it provides FIs, no matter their size, the ability to move forward and remain competitive with Megabanks.
Data is more powerful and effective if it is shared across the organization, so no one at an FI has to ask users what they need or would like from their experience. With a clear view at clean data, FIs can know everything they need to know about catering to their users. This is why data must be uniform, trusted, and actionable across the organization. To support an internal culture where data is shared and kept tidy, data should be referred to for all decision making. For transformation to take place at this level, FIs must first be able to answer if they are willing to embrace change.
Thank you to Jim Marous and attendees for another great Gold Standard Series event!
You can watch Banking Transformation: Data and Analytics as a Foundation for Success on demand by clicking the link below.