Data is the hottest new commodity around the world. For financial institutions, much data is already readily available to them (e.g. basic client information, client transaction histories, etc.); however, digitalization also allows financial institutions to tap into various sources of external data such as mobile operators, geospatial data, credit bureaus and social networks. Used properly, such data can help financial institutions drive profits and better manage costs. In order to maximize the benefits off all this data, financial institutions should develop clear data strategies that combine three fundamental pillars:
- proper data management (including the collection, storage, structuring, review, cleaning and monitoring of all data as well as effective data infrastructure and tools),
- reporting and visualization (reports and dashboards that create an intelligent view of the current state of the business and allow management to track performance) and
- data analytics (models that predict consumer behavior and give a deeper understanding of consumer decision-making).
By understanding the value of data (both internal and external) as well as developing a data strategy that emphasizes analytics, financial institutions can drive business growth in ways never imagined before and transform raw data into significant dividends.