Data and analytics capabilities have made a giant leap forward in the last few years. The volume of available data has increased, algorithms have become more sophisticated, and computational power and storage have steadily improved. The convergence of these trends is fuelling rapid technology advances and business disruptions.
Yet, as a recent Aite Group study commissioned by TransUnion shows, most financial institutions are capturing only a fraction of the potential value from their data and analytics. We look at some of the barriers to building an effective analytics ecosystem and how these can be overcome.
Data and analytics are changing the basis of competition, enabling companies to both improve their core operations and launch entirely new business models.
Many financial institutions are assessing their current solutions with a view to building an analytics ecosystem that will be a competitive differentiator.
If they’re able to integrate new data and new analytics techniques, such as artificial intelligence and machine learning, into their analytics process, they’ll likely be able to react more quickly to market changes.
The Aite study looked at analytics in the financial services industries in multiple countries, focusing in on three aspects of orchestrating the analytics process across the enterprise:
What the study found was that disparate systems, the lack of a single platform and talent were the biggest barriers to extracting value from data and analytics.
Here are some of the high-level findings.
The net result is that many financial institutions have limited insight into how their customers use their products and services, and a narrow understanding of the financial impact of other activities consumers engage in.
Only 5% of respondents said it’s not challenging to find qualified data scientists.
Extracting powerful insights from big data requires the right talent as well as the right approach.
There’s a great demand for data scientists and business translators who can combine data savvy with industry and functional expertise — but attracting and retaining this talent is easier said than done.
This is where partnering with data and analytics experts can be a powerful differentiator.
Data and analytics experts can help with transformation in some key areas. Firstly, by providing additional, up-to-date data that will give you a more holistic view of consumers.
And secondly, by helping to integrate that with your internal data sources, enabling you to draw meaningful insights that can inform your risk and marketing strategies. Finally, their investment in some of the latest analytical tools and technologies can help you extract those insights more quickly.
You already have the data — now’s the time to put it to work for your organization and your customers.
TransUnion’s online and offline data assets and industry expertise enables us to help organizations narrow some of their gaps in data, analytics models and skills and help create more effective analytics ecosystems.
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