Running a financial institution in today’s market can feel like a never-ending game of catch up. As soon as a bank adapts to one threat, they’re facing a new one. Two of the main issues banks face today are understanding today’s consumer and what they want from a modern bank and guarding themselves against ever-increasing fraud threats. With the growth of alternative banking methods being offered to consumers and because cybercriminals are always diversifying their targets and using stealthier methods to commit identity theft and fraud, it seems impossible to keep ahead of the game.
But adaption and building strategies to address these threats is easier than you think. The answers are likely right at the banks’ fingertips . . . they just have to study the data and hear the story it tells. But to do that, the organization must be primed with a data-driven culture, an operating environment that seeks to leverage data whenever and wherever possible to enhance business efficiency and effectiveness.
There’s no question that data has changed the way every industry, including financial, does business. It’s increasingly clear that banks no longer can operate without incorporating data analytics into the business culture. The amount of data to be leveraged these days is endless. Between contactless payments, mobile channels, social and digital sources banks have a plethora of data to work with. However, with the emergence of disruptive Fintech and Banking models, the lack of a data-driven culture in today’s financial institutions is a key component holding them back from competing with the online and tech-driven options available today.
We no longer have to go with our “gut” when there are volumes of data amassed by financial institutions that can be used to create tremendous value. Leveraging it more effectively can provide crisp analytics that deliver knowledge and drive better business decisions. A company-wide digital transformation is necessary to empower both the business and the customer.
But how do you get there? In my view, creating a data-centered culture where everyone knows what data is available, how to access it and is compelled to use it for business-driven purposes on a daily basis boils down to a four-step process. Well, it’s really five steps if you count Step Zero, but I’ll get to that in a minute. This four-step process is designed to help you harness and mine the data for answers to specific business questions and issues.
You can read the entire article in Bank Business.