The financial services industry, like many other industries, have grand plans for digital transformation. A key part of this digital transformation is data & analytics.
In today’s world, customers no longer expect, or want a transactional relationship with their FS&I organisation. Whether that be their bank, insurer, building society or investment management. What they expect and want is a personalised experience, delivered through a digital partnership. Customers want their bank to monitor their spending and show trends to understand their finances, their insurer to settle claims faster, their building society to provide a seamless experience and their investment management to give clear insights into their portfolio while removing as much risk as possible.
The key to providing this value and improving those relationships is the combination of deep industry expertise and leveraging their customer data. And the best part? They already have the key; they just need to know how to use it.
A Changing Landscape
The FSI industry has been and still is, open to exploring modern analytics, AI and machine learning. They understand the insights that can be generated from customer data are arguably bigger and more important than any other industry.
Despite their wealth of data however, a recent survey showed only 3% of FSI organisations rate themselves as leading in the data & AI field, compared to 11% on average from all other industries. That’s despite 66% of FSI organisations wanting to understand their data more.
There is a long list of reasons for this, but the 3 most common reasons are:
- Holding onto legacy systems
- A lack of internal skills or capability
- Workflow issues between departments
The Cost of Doing Nothing
We are already seeing organisations who have made use of big data analytics, cloud and AI to turn this into insights and knowledge achieve higher revenues, improved products and a faster customer acquisition rate.
Ultimately, the organisations who don’t embrace these technologies will not be offering customers what they want. Customers will be enticed to better products and services for their individual needs, being sold to them using the insights available from the data on them.
It’s not just the younger generation that they will miss out on too. 46% of customers used digital services for the first time in the pandemic and very few (7%), plan on going back. Now they are exposed to that, it won’t be long before they ask for more.
Meeting Customer Expectations
To meet customer expectations and ultimately deliver an ROI, organisations must create a data strategy roadmap. FS&I companies cannot afford to be conservative — the only way to stay ahead of the game is to embrace the change as early and as bravely as possible. Act quickly, and you will be able to meet your customers digital expectations.
Something that is key to your data strategy is aligning your key stakeholders and engaging your team to work towards the same goal.
The ANS Modern Data Platform Navigator is designed to do just this – help FSI organisations unlock greater value and insights from their data by modernising current data platforms and helping your teams realise value