Essential Components of a Brilliant Data Strategy

Making the transition to a culture of data analytics and targeted marketing can give your company the upper hand against the competition for years to come. We've condensed the process into 5 essential data characteristics to help give you a jumpstart. This is an excerpt of the first two characteristics from ‘The Banker’s Guide to Big Data’ whitepaper which can be downloaded here.

1. Agile

For marketing efforts to be most effective, it’s crucial that internal and external data be as current as possible. (We’re talking minutes or hours—not weeks or years.)

You can access external data in real-time via two methods. First, you can access it via multi-sourced account aggregation. Second, you can access it by analyzing transactions that are leaving your institution to a competitor. The best approach is to use both methods at once.

Having real-time access to external data enables you to be fully data driven, which is increasingly pivotal to modern banking. When we interviewed Anthony Thomson,1 the Founder of Metro Bank (the first bank to launch in the UK in over 100 years), he said, “We are in the data business as much as we are in the banking business.” That’s how new players think. Anything less is too slow.

Players in the financial industry want an agile experience because it’s what consumers have come to expect. These consumers visit Amazon and see recommendations based on what they just purchased; they visit Google and see results that directly match what they just searched for. They expect the same experience from their bank or credit union.

2. Accessible

According to a recent KPMG survey,2 only one third of bankers say their financial institution has “a high degree of data and analytic literacy.” If your institution falls into the category of those who don’t have this literacy, there are two ways to fix the problem:

1. Hire a team of professional statisticians
2. Purchase effective data analytics software that does the heavy lifting behind the scenes and then displays simple, easy-to-read charts

While a combination of both options is probably ideal, the quickest and most affordable way to solve the problem is by investing in effective data analytics software. The right software will empower your team with all the crucial data points. Once you have that power, your team can unite around analytics.