Making Sense of Data: The Cornerstone of a Frictionless Customer Experience in Banking
Managing data and dealing with legacy systems continues to be a challenge for most financial institutions.
Despite a wealth of information, most banks struggle with data insights or even offering the correct services—the cornerstones to providing a frictionless customer experience. Much of this can be attributed to the nature of current systems: most large financial institutions have dozens of data silos, many of which are not integrated.
At Microsoft, we understand there are new models needed for data management, and the potential benefits that mastered data will create.
Prior to big data and predictive analytics joining the modern banking lexicon, few individuals understood the true value of the contextual information surrounding data. Data points were viewed as discrete, historical objects—unmoored from context, collected and processed in an isolated manner.
- Rich in data, poor in insight. The wealth of bank information gathered over decades of interactions and transactions was originally collected to serve in large measure as an audit trail—a confirmation that transactions had processed as intended. This explains the current situation in which most banks find themselves: each data silo has evolved to serve a specific function. Banks have become rich in data, yet poor in insight.
- Confidence requires mastery. Consumer confidence in the financial institution depends on data mastery; customers are acutely aware that their data is valuable and expect it be used to their benefit. And while outright security breaches damage consumer confidence, the daily frustrations surrounding data mismanagement have an ongoing detrimental effect on customer experience and trust.
- The promise of data properly employed. These legacy systems can hinder progress as their original purposes no longer match the competitive pressures that financial services face. Unused data is a liability for banks: it must be stored and protected. But, properly employed—whether for the purpose of looking back, taking action now, or anticipating future needs—it holds immense promise for securing the future of financial services.
Adopting secure and scalable solutions allows for the advanced analytics and augmented intelligence capabilities once considered science fiction—simultaneously removing inefficiency and permitting greater customization and improved customer experience. With such capabilities, even regulatory complexity might be simplified and threats such as fraud, money laundering, and cybercrime detected and suppressed.
Empowering our customers in financial services to innovate is central to our mission: we understand that transformation can be challenging, but we also believe that it holds incredible promise. Our approach is to leverage technology in novel ways—enabling business agility with the tools that will define the future of banking.
As your trusted technology partner, we offer both industry know-how and enterprise-grade solutions. We can help no matter where you are on your digital transformation roadmap.
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