When it comes to technology, history has shown time and time again that institutions who don’t keep up with trends fall behind in ways that constrain their growth and threaten their relevance or sometimes even force their hand toward industry consolidation. In our current environment, for example, customers often lack confidence in their “financial services institutions” (FSIs) and are seeking highly-effective and personalized experiences in exchange for loyalty. Therefore, it’s become something of a truism to say that FSIs earning their customers’ trust and establishing strong data analytics is the key to success, but what does this mean in practice? What are the possible rewards to be gained by embracing the latest in data analytics and how might cutting-edge technologies such as public cloud have an influence on outcomes?
Opportunities for Data Analytics in Financial Services
Data serves as the oxygen that differentiates the modern enterprise from the pack, but it’s not necessarily a simple task to harvest the potential benefits that robust data analytics can offer. If, however, a solid foundation has been laid then a number of potential benefits can be derived from such an effort. Specifically, a unified customer view across the enterprise, an enhanced client experience, and more efficient processes are among the key gains that can be achieved.
High regulatory standards coupled with chronic underinvestment in technology have led to a situation where data at financial services institutions is overly siloed. A typical client may have separate accounts for personal and business uses, a need to obtain a home mortgage, and plans to save for college or retirement, but these are treated as separate and distinct with no unified vision of the client. Breaking down these data silos enables an institution to “see” the client for the first time.
With this new foundation in place, it is now possible to better create and deliver products and services that meet the needs of clients in a faster and more intuitive way than traditional methods. Customers are hungry for this type of experience: for example, nearly two-thirds are willing to share their personal information in exchange for information on products and services that are relevant to them.1
This newfound efficiency leads to better procedures and processes for both the customer and the enterprise. While the customer experience can be enhanced through deployment of chatbots, utilization of robo advisors, and recommending the best products to buy to meet the sometimes unspoken needs of clients, the enterprise also gains by improving margins, rationalizing headcount and other resources, and even getting a better handle on situations involving fraud or default.
The Power and Promise of Public Cloud
Central to driving success in data analytics for financial services companies are the tools and technologies available in public cloud offerings. Specifically, simplicity, scalability, speed, and security can all be enhanced with the judicious application of cloud resources.
- All major tasks associated with analytics can be run through an intuitive interface free from the constraints of managing infrastructure
- Specific needs can be met based upon requirements for size, performance and cost through instant scalability
- Data can be ingested, queried and exported in a quick and timely manner as required by the task at hand
- Rationalizing systems and processes around a public cloud core achieves the added bonus of both simplifying and increasing the overall security profile
Altogether, these attributes deliver a level of service that is feature-rich, cost-effective, and capable of meeting both current and future demands. Companies that embrace these tenets and make a concerted effort to embrace the cloud will be well situated to meet the challenges of the future.
Companies seeking to accelerate performance rely on Maven Wave for innovation-driven digital transformation. Maven Wave delivers strategy-led, results-driven business solutions powered by cloud computing. To learn more, contact us now.
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