CREATION OF A DATA DRIVEN CULTURE
Trends in the financial services industry world over point to ‘digitally-born innovations’ disrupting traditional ways of doing business. Customers are increasingly more comfortable dealing with digital entities - be it for banking, assessing personal finance, make payments, or consuming insurance products. Small and medium businesses have alternative credit forms available for meeting operational needs.
Coupled with the internet era, globalization has resulted in complex, cross-border relationships bringing together a host of factors that influence the financial services industry as a whole. Regulation has increased in response to the need to systematically quantify risk exposure in this climate. It is no longer possible for banks to be isolated and catering only to a few customers, with reach, risks and benefits extending far beyond national borders for many banks.
Therefore, a financial institution needs to respond to these changes of modern banking in a strategic manner that drives increased value from diverse investor bases, across regimes and markets. Rather than consider each such change as tactical, a comprehensive rethink is required to rise to these challenges. In other words, the financial services industry requires a transformation in its approach to doing business in order to meet these challenges.
A MODERN DATA STRATEGY IS THE STARTING POINT FOR THIS TRANSFORMATION
A good data strategy is as much about the data, as it is about the platforms where the data is stored and processed, the people that work with this data, and the processes they follow. The advent of big data technologies has brought about a fundamental shift in how platforms are engineered to store and process data. It is no longer expensive or technologically difficult to store, manage and process massive amounts of data. While data science is heralded as the job description that will be best placed to handle this data deluge, the people already employed by banks and financial institutions are, in fact, the most able to derive actionable insights relevant for the business.
A good data strategy would therefore spell out the program to re-skill existing human capital, where the latent potential of an already domain-ready workforce is upskilled with new tools, methods and mental models. The ability to deliver on insights from data is hinged on the capability of skilled people to iterate rapidly using the right platforms, and a freedom to experiment responsibly. Devising the right processes and incentives allows this data-driven culture to thrive and flourish.
The Data Team can help in this journey. Contact us to find out more.