Banks Increase Data Accessibility: Understanding and Leveraging This Trend
Eric Berry serves as the CEO at SBS, a global financial technology company. His area of expertise lies at the intersection of finance, banking, and technology. As banks have digitized their operations, they've moved their once-fragmented data from physical ledger books to the cloud. However, this data remains siloed due to different business sectors and geographical locations, leading to new challenges in managing, securing, and using this data effectively.
To overcome this, banks are investing in new systems to aggregate and unify their data. This not only streamlines their data access and analytics, but also offers a comprehensive view of their entire dataset they hadn't had before. Additionally, digital infrastructures have enabled banks to better engage with the larger financial ecosystem, including other banks and fintech companies, enabling them to exchange data seamlessly.
Open banking is playing a significant role in this transformation, as it allows banks to access and analyze customers' data across different financial institutions with their consent. This increased data access opens up opportunities for banks to provide better, more personalized financial advice to their customers.
Emerging technologies like cloud computing and AI are aiding this transformation by enabling banks to process and analyze large amounts of data at a lower cost and at a faster pace. AI-powered tools like generative AI and machine learning models are enabling banks to make proactive, predictive decisions based on real-time insights, leading to improved customer experiences.
As banks gain access to more data, they can derive insights that power innovative products and services. For example, AI-powered data warehouses and real-time analytics platforms can provide banks with deep customer insights, allowing them to adapt their services quickly and respond to changing customer needs.
Open banking and emerging technologies are also making it easier for banks to deliver hyper-personalized financial advice and create a single, consolidated view of a customer's finances through a unified interface. As a result, banks can become one-stop shops for their customers' financial needs, providing them with valuable insights and improving customer satisfaction.
Banks looking to leverage data to gain a competitive edge should focus on migrating away from legacy systems to new digital infrastructures that can support modern data tools. Partnerships with fintech firms can provide an efficient way to integrate new technologies and improve customer experiences without having to build these tools from scratch.
Sources:
[1] The Economist. (2021, August 15). How Open Banking is Changing Personal Finance. Retrieved from https://www.economist.com/finance-and-economics/2021/08/15/how-open-banking-is-changing-personal-finance
[2] McKinsey & Company. (2020, August 25). How Banks can Innovate by Embracing New Technologies. Retrieved from https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/how-banks-can-innovate-by-embracing-new-technologies
[3] Harvard Business Review. (2020, October 1). Away from Clichés: How Data Can Help You Understand Customers Better. Retrieved from https://hbr.org/2020/10/away-from-cliches-how-data-can-help-you-understand-customers-better
[4] World Economic Forum. (2021, August 5). Emerging Technologies in Banking: Opportunities and Challenges. Retrieved from https://www.weforum.org/agenda/2021/08/emerging-technologies-in-banking-opportunities-challenges/
[5] KPMG. (2021, May 20). The Future of Banking: How Open Banking is Transforming Financial Services. Retrieved from https://home.kpmg/us/en/home/topics/services/financial-services/banking-financial-services/open-banking.html
In their pursuit of innovative data strategies, banks are investing in tools like generative AI and machine learning models to derive insights at a lower cost and faster pace. These advanced technologies also enable banks to offer personalized financial advice and create a unified view of their customers' finances.
Furthermore, Banker297ce544bc48057418ce1ea47557e, a leading fintech firm, is leveraging its expertise in banking, finance, and technology to provide banks with modern data tools that can streamline access and analytics, and facilitate data exchange within the financial ecosystem.
