The global financial sector is undergoing relentless disruption. With an increasingly competitive and digitized market, financial institutions must re-strategize and adapt to stay top of market. Financial institutions can gain a better position against ongoing disruptions by prioritizing data and analytics—and accelerating digital transformation—to improve customer experiences and manage business risk.
London Stock Exchange Group (LSEG), along with experts from TIBCO, discuss these changing trends in a recent webinar: “Transforming Financial Services and Insurance with Data and Analytics: The Strategic Currency of the Future.” LSEG’s Oli Bage, head of architecture, data & analytics, and Geoff Horrell, group head of innovation, along with TIBCO’s Richard Price, senior director of FSI, and Heleen Snelting, director of data science, came to several key outcomes.
The experts agree that data and analytics can
- Attract customers
- Address new entrant pressure
- Create a differentiated experience for customers
- Manage security risks
According to Price, “There’s a clear drive for customer differentiation, engagement, and ease of use. We’re seeing a major change in the marketplace with the rise in data science and analytics.”
Increase Your Customer Experiences
Customers are transferring their retail experiences onto banking experiences—and fintechs are keeping up. “There’s been a cross-pollination from other industries that are more customer-focused into financial service,” Horrell continues, “Fintechs don’t think of customer data and financial data as separate. They have a completely unified way of thinking of technology.”
More than ever before, banks understand the need to build solid relationships with their clients through refined, personalized experiences that deliver timely and accurate service. Data from past interactions, as well as current internal and external sources, can help build customized solutions that optimize the customer’s journey.
According to Snelting, “Smart banks are looking at customers in a unique way, by analyzing data and understanding customers. Analytics enables a smarter customer journey where banks can better take care of customers and act on data in a timely manner. This is key as the value of insights can diminish quickly.”
Considering the numerous engagement channels at a client’s disposal, financial firms need systems that can integrate customer data across different end-user platforms to guarantee uninterrupted service continuity and consistency.
Manage Your Business Risks
Banks at all levels are grappling with mounting data privacy regulations amid increasing concerns of data breaches and ransomware. Thanks to the ever-expanding sea of financial data and cybercrime activities, service providers at all levels have data security and privacy at the top of their concerns.
According to Bage, “The question comes up over and over again: what happens if our data leaks? It’s not so much that platforms are not secure, but that they are not configured correctly, or data scientists may not know how sensitive the data actually is. What we’ve been doing in our CDMC initiative is automating the important controls for managing security, so nothing is misconfigured.”
Because of the numerous data sources at their disposal, financial organizations must approach data security from a more holistic viewpoint. They need to understand the data they have, its value, and all the ways it can be accessed. That way, they can deploy encryption appropriately and develop a thoroughly tested data backup strategy.
Hear From Your Peers
During the webinar, there were several key polls that demonstrated the growing need for customer experience and better risk management. Here are some of the results.
Participants voted that they:
- Are still in the process of developing a data strategy (50%)
- Have several barriers to increasing customer experience, such as data governance (58%) and data quality (50%)
These polls demonstrate key findings from the LSEG. The company’s survey on current data trends shows that many organizations are seeking data scientists at an accelerated rate to overcome problems in customer experiences and data strategies. More than 50% of participants stated they expected data science roles in their organizations would increase in the next 12 months.
Watch the Webinar Now
Will you become another statistic in the ever-growing fintech disruption, or will you seize the opportunity to innovate through deeper data insights?
Successful competitors have data and analytics at their core. They are monetizing data, using it to design products, create new markets, and share insights throughout their organizations for greater innovation.