Today's banks face challenges from more directions than ever. As well as keeping pace with the frequent arrival of new regulatory requirements, banks are under competitive pressure to deliver ever more personalized and responsive customer services.
Harnessing their most precious asset 'data' offers banks a key advantage. In recent years, many banks have built up their analytics capabilities. Curiously, this approach can in fact stand in the way of a true understanding of each customer's unique needs and preferences.
Not so long ago, banking was heavily reliant on manual, paper-based processes. In the back office, digital systems were designed with these ways of working in mind‚ with each line of business typically operating its own siloed processes and information systems. Although banking incumbents are now transitioning to more integrated, automated and data-driven workflows, many of these historical data silos remain.
In many cases, banks can build a 360-degree view of their customers from these single perspectives. Analytics that rely on data only from the front-office or only from the back-office will offer very different and potentially distorted images of customers, and lead to possible risks for the bank.
Without an integrated view, banks will be unable to offer effectively targeted, tailored services they need to foster customer loyalty. At worst, banks may alienate their customers by reaching out with irrelevant content too often.
Every customer interaction is an opportunity for banks to demonstrate they understand the customer's needs. To gain true customer insight, future-facing banks are now aiming to go beyond the 360-degree view.
As well as front-office insights from customer interactions, banks have a wealth of data locked away in other areas of their business that is rarely applied to the customer experience. For example, an analysis of transaction data has the potential reveal hidden trends‚ shining a light on valuable opportunities to deliver targeted products and services.
The new aspiration is a 1080-view: an approach that combines front-to-back customer insights with ethically sourced data from external locations such as social media platforms. In the world of winter sports, a "ten-eighty" is three 360 spins. For banks, it means 360-degree views from three sources combined: front-office, back-office and third-party data platforms.
In a new white paper, Arvind Purushothaman, Head of Analytics, Insights and Data practice, Virtusa, explores why the 1080-view is an unprecedented opportunity for incumbent banking and financial institutions to re-establish and re-kindle relationships with their customers.
To achieve 1080-view customer insight, leading financial services organizations are aiming to design enterprise data lakes that bring together internal and external data sources in a secure, compliant way.
Any data lake initiative on this scale will require a major investment of time and resources and projects of this kind necessarily present a significant degree of risk. In the paper, Arvind Purushothaman, considers how banks can best prepare for and de-risk their 1080 journeys and how current trends such as AI, machine learning, and open banking should factor into the target solution.
Is your bank ready to take on the 1080-view challenge?
To explore this topic now and discover how an expert digital engineering partner like Virtusa can help you realize your transformation objectives
click here to read the white paper.
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