Wealth Access Report FINAL - Flipbook - Page 6
Financial institutions have long sought to cross-sell multiple prod-
How would you
describe the maturity
of your bank’s data
strategy?
ucts to existing customers to increase revenue and grow profitability. But multiple products also create multiple data entries across
various systems in the bank: deposit accounts, mortgages, credit
cards, car loans, wealth management and potentially even commercial accounts. These products may all have a separate customer record and potentially inconsistent information. For instance,
one might require a middle name while another requires an initial,
or one might use a shortened nickname while another uses the full
11%
40%
16%
name.
“The data of how I relate disparate data about an individual in
these different systems to one person or profile or one legal entity
can get really challenging and potentially problematic,” Nasar says.
Advances in Technology
34%
If technology created the information silos that banks and credit
unions must break down, it will also be the solution for unifying,
We use data in several areas of
the bank but see significant room for
improvement.
centralizing and leveraging the data. Small banks and credit
unions can add the same capabilities as the biggest financial institutions and tech firms because of the growing number of partners
offering data storage and management tools, integrated analytics
We are in the early stages of our
data strategy and have leveraged data in
just a few areas of our operations.
and visualization applications.
And it’s clear this is an area of growing importance to small institution executives — especially data analytics. According to the
We do not have a data strategy.
2024 Technology Survey, 80% of respondents said their institution’s leadership team and/or board had discussed allocating bud-
We use data in many of our decisions
and areas of the bank, and believe our
data strategy and execution exceeds our
peers in the industry.
get or resources to data analytics. Only 32% said their bank had
upgraded or implemented data analytics platforms and capabilities
in the 18 months prior to the survey period of June and July 2024.
These tools may not be new to the market, but they are now
Source: Bank Director’s 2024 Technology
Survey
available at prices that appeal to community bankers. Executives
increasingly believe that while the core stores the institution’s
general ledger, it may not be the primary technology partner for
their data strategy given the difficulty or expense associated with
extracting information from the core. And given the number of
options available now, small institutions also don’t have to build
these tools in-house to own the process. These outside vendors
can help financial institutions unify customer data from disparate
systems into one location and then enrich it. The result is a richer,
holistic customer profile that institutions can use to personalize their services and cross-sell more effectively. Platforms like
4 | FINXTECH INTELLIGENCE REPORT
