Successful companies across the globe, regardless of size and type, have one thing in common. They LOVE data. And banks are no exception. In fact, banks and financial institutions should know better when it comes to data and the wonders it can do for their business.
Okay, let’s cut to the chase.
We all know a typical bank hoards a tremendous amount of data and intelligence behind it. With digital transformation being the focal point for most banks across the world, there is pressure to effectively get the best out of data in a way that is useful and smart for the customer and organization alike.
50% of banks rank accessing data from multiple sources as one of the top three challenges to implementing their AI strategy.
This blog walks you through how data democratization and data-driven culture play a vital role in unleashing the true potential of data in the banking industry.
What is data democratization and why do banks need one?
Data democratization in the banking industry is the process by which data is made available to a wider range of users within the organization, including non-technical users. This allows for better decision-making and more informed strategic planning.
Moreover, In the banking sector, data democratization can help improve customer experience, better target marketing efforts, and reduce fraudulent activities. By making data more accessible to employees, banks can make more informed decisions that can improve the overall customer experience. Additionally, data democratization can help banks better target their marketing efforts by allowing them to segment their customer base more effectively. Finally, data democratization can also help reduce fraudulent activities by giving employees better visibility into customer data.
What is data culture?
A data culture is a set of shared values, behaviors, and norms around data that guide and motivate individuals and teams to collect, manage, and use data effectively. In other words, it is an organizational culture of data-driven decision making. Many financial institutions are now turning to data to help them understand their customers, manage risk, and make better decisions. Data culture is playing a role in this, as it is helping to break down data silos and make data more accessible to decision-makers.
Why does it matter?
According to a survey conducted by a private IT multinational firm, nearly two-thirds of respondents say that it was complex and, sometimes, challenging for them to identify and control data sources in their organization. Moreover, many studies and market analysis available on the internet tell us that companies with positive ROI tended to focus on harnessing the potential of data and analytics.
Today, workplace culture says a lot about an organization and how it cares for its people and success. This is why modern enterprises that need to be more competitive than ever before want to build a workplace culture in which employees are well-aware of the true power of data they deal with and its potential uses. On top of all, data culture matters because employees should be able to use data to make meaningful decisions for the greater good of the organization they work for.
The benefits of a strong data culture in banking
Assessing risks and enhancing customer needs are some of the challenges any bank faces. A data-driven approach will certainly help banks grasp the nettle to deal with those challenges. Not only a strong data-culture enables agility in the realm of banking but it also provides quality insights to improve operation efficiency. Here are some benefits of a strong data culture in the banking industry:
Improved Risk Management: A strong data culture in banking results in better understanding and assessment of risks. Banks that access and analyze big data can easily identify areas of risk across a wide range of parameters and develop strategies to mitigate them.
Meaningful Customer Insights: A data-driven bank can provide insights into customer behavior, preferences, and needs. With this information, banks can tailor their services and offerings to better meet client needs.
Regulatory and Compliance: Banks with a strong data culture can detect and prevent fraudulent activities more quickly, as well as ensure that they are compliant with various laws and regulations.
Maximized Efficiency: Data-driven cultures can help banks identify inefficiencies and areas for improvement. They can also help automate manual processes and streamline operations, leading to cost savings and improved performance.
Proactive Decision Making: Banks with a strong data culture make it easier for C-suite employees make better, informed decisions. When data is democratized, i
It opens up transparency and is essential to all data-driven organizations.
Wrapping it up…
It is no news that the banking and finance industry has long been known for its data-driven culture. Ever since the beginning of industrialization, banks have been collecting data in multiple forms to connect with their customers and stakeholders. It was only recently that the word “DATA CULTURE” has become a buzzword, as the industry has become more competitive and data-driven.
Moreover, as there are non-technical staff working for banks, it is crucial for banks to make it easier for them to handle the data without any breach or infringement. This is where data democratization comes in, and data culture is the key to unlocking it.
- Data analytics in retail: how to keep customers coming back - October 18, 2023
- RPA in Project Budget Management: Simple yet Significant - August 16, 2023
- Cybersecurity Regulations: Forewarned is forearmed - January 20, 2023