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Why Does Banking I.T. Need to Prioritize Data Strategy? Part 1
10 Apr, 2023
Why should Banking CIOs/CTOs care about data and develop a strategy?
How often do customers visit a bank in person?
These days, rarely.
Do the options outside of brick-and-mortar banking improve their overall customer experience?
Yes…but why?
The role of data is taking precedence in how banks develop new products and optimize their services for their customers. Keep the people happy.
As the banking processes become more digitized, IT executives are increasingly tasked to manage more data and provide greater insights into user behavior based on that data.
In this first of three-part blog series, Asad Mahmood, Vice President and Industry Director for Data and AI at HSO, discusses the need for senior technology executives to develop a strategic approach to data collection and analytics.
There are very few in-person transactions at banks these days; most transactions are digital.
It is important for CTOs and CIOs to capture and analyze as much enterprise data as possible to maximize the customer experience.
When we talk about the digital experience, we mean that each of these customer interactions generates tons of data that require banks to answer questions like:
- How are their customers interacting with them?
- What is the customer looking to do?
- What is the best new product or service the bank can provide for these customers?
At the same time, this data is vital to identify where improvements can be made to the products and services the bank is already providing and where users struggle to engage with the bank.
We cannot make meaningful decisions if we do not record and analyze the data appropriately. So, not realizing the value of your data can be very detrimental to any organization’s growth. That is why it is important for CTOs and CIOs to put a concerted effort around the capture and analysis of all generated data.
Getting started
We are truly in the age of big data. Technology can’t keep pace with the amount of data we generate. Organizations are getting overwhelmed. Many organizations must leave valuable data behind because they are not equipped to collect, manage, or analyze it effectively.
Technology executives searching for ways to utilize their data better need to look at:
- the different data feeds and data generation engines that they currently have,
- what the different data sets they consume are,
- and then create a strategy to adopt a better data-driven approach.
Developing a data strategy can save the company substantial sums of money in the long term and realize significant benefits in the short term.
Without a solid data strategy, many businesses simply thrash about looking for data wherever it might be found and applied.
For example, a group discovers they need specific data for their team, and the company spins up a project team that creates an architecture and starts developing a solution. Then another group comes in with a similar request for a different set of data, generating yet another project team, architecture, and solution. So, you end up creating even more silos than before because those projects and those initiatives are not driven by a centralized strategy.
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A centralized data strategy will help.
Whenever we create a new initiative to utilize certain data elements, we make sure it connects with the central data collection and analytics engine. As you keep on building, you can see all your organizational data and how it will help you beyond just your current initiatives.