FINANCIAL INSTITUTIONS DATA QUALITY, ANALYTICS AND REPORTING
R&C: How extensive is the use of data analytics within financial institutions (FIs)? How does this compare to other industries?
Wong: FIs have been using data analytics for many years in different areas of the organisation. Traditionally, data analytics have been applied to marketing, pricing, customer behaviour, financial crime and other risk management models. However, in recent years, areas such as compliance and back office operations have started adopting the use of data analytics to improve process efficiency, and many FIs continue to invest further on enhancing data management and data analytics capabilities. I do not think the approach of FIs is any different than other industries, other than the fact that they are applying more data analytics into decision making because large FIs have collected a lot more data than other industries. This data includes income, spending behaviour, location, travel behaviour, customer risk appetite and much more. Obviously, this would require customer consent, but this would allow the FI to improve its products and services and tailor them to a customer’s needs, and improve overall efficiency and effectiveness by accessing data that the FIs already have simply by ‘joining the dots’.
Jan-Mar 2018 Issue
Deutsche Bank AG
FTI Consulting
SVP Strategic Initiatives