Data management key to successfully mining data analytics

by. Brandon Bogler

Data analytics can play an important role in the way financial institutions (FIs) go about building their customer bases and generating new revenue streams. However, a recent survey found that many FIs aren’t doing enough to effectively mine customer data in their efforts to grow their businesses. Not surprisingly, the study revealed that data volume and analytics complexity were the most common challenges for FI staff.

The survey revealed that just 46 percent of FIs can analyze external data about customers and just 32 percent can analyze social media activity. Twenty-nine percent of those surveyed said they had the ability to analyze their share of a customer’s wallet.

Even so, those asked said they felt reassured in the ability of developing technologies to assist them in comprehending their data and reaching their FI’s goals. Some 60 percent of survey respondents said cloud, predictive analytics and real-time data processing technologies will be “extremely valuable” to their organizations’ strategies in the next two years. Products like TMG’s Catalyst and Clear Trend are essential building blocks for a successful data analytics strategy. When used in conjunction, these tools allow FIs to analyze both macro and micro views of their portfolios.

However, prior to FIs effectively using these tools, they must establish the groundwork for data management and bolster data quality.

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