Why Data Can Play an Important Role in Banking Growth
Data is the basis of strong business intelligence, helping leaders to make decisions that go beyond surface-level analysis.
Not only can it help increase revenue by enabling your bank to focus on its most valuable customers, it could also help solve or mitigate issues like fraud. And by being agile with your data strategy, the possibilities are endless, says Feinstein.
“We need to open our minds to more flexible and innovative uses of that data, because I think the priority decisions will change depending on how we think about the data,” he says.
Those insights must be ultimately grounded in daily operations. The McKinsey report notes that banks often run into challenges translating larger strategic insights into day-to-day goals. Feinstein points to the potential of deep integration online as a way for banks to translate the same mindset into their in-branch approaches, which has been made easier with the rise of digital transactions.
“We’re transacting more and more on digital platforms, and less on brick-and-mortar platforms,” he said. “That has provided opportunities for banks to integrate data sets to really get more holistic programs to help identify the sorts of opportunities.”
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The Types of Data Banks Should Be Tracking
There’s a lot of potential for data gathering, both for business and customer insights. This allows for stronger strategies to be built around historical analysis, marketing automation, performance analytics and regulatory compliance.
With data so prevalent in many transactions, it can be tempting for organizations to gather everything. However, Feinstein notes that the idea that data must be gathered at scale may not necessarily be compatible with other considerations that matter to financial institutions, such as privacy.
“It’s really important that part of the data program include responsibility and responsible use of data, both as a steward of that data but also in building capabilities with transparency and fairness baked in,” he says.