The financial services industry generates huge volumes of data and storing it safely and correctly has always been an essential element of business. Data, however, is typically stored in old mainframe systems, which while robust and capable, become problematic when new age analysis is required, as it can be difficult and time consuming to run a data query on older systems.
Time is money though and technology is changing the potential outcome for many – and probably every- industry, and taking a smart approach to analysing data, particularly in financial services, will provide a competitive edge in sustaining business and retaining customers.
As Artificial Intelligence (AI) progresses, facilitating a simpler process of analysing data could be wonderfully productive. As an example, perhaps a section in an insurance or investment product policy sees many complaints or queries arise. It could be that the wording is confusing or the selling process quite complex. Using this feedback as discovered in your data on complaints logged, allows you the opportunity to reassess how a product is presented to clients. By ignoring crucial information that your data could be telling you, you’re simply shooting yourself in the foot.
You could fix any issues in communication as well, by looking in to the preferred language of your customers. It may seem thoughtless to some if they opted for English when onboarding as a client, but you continue to send communication in another language. Analysing data in cases like these can show you go the extra mile and listen to what your clients need. Imagine if you drilled even deeper into insights on clients, how much better your service could be? AI also has a significant role to play in getting new clients from scratch.
Achieve the artificial sweet spot
Embracing technology is, without question, a necessary step forward in managing clients, and will allow you to do more than ever before. Keep in mind that technology and Big Data will make it harder for businesses to hide from the Regulator, who is also looking to use similar technologies to assist in its market oversight role. As the industry shifts and regulation like the RDR could massively change the way financial services are offered, being prepared – and making the most of what you have available to you, taking cognisance of the best technology for your business – is the sensible way forward.
The customer has always been important, but technology is changing the game. Crunching data goes a long way to protecting the consumer, if you listen and properly interpret the results. Targeting the right products to the right customers assists in achieving fair customer outcomes, the demonstration of which will be required for survival in the industry of the future.
Data is valuable and will only become more useful in the task of balancing the customer experience with the right amount of tech-savvy and human interaction. I urge you to do your due diligence on any third-party providers and new tech systems you might take on, keeping sustainable solutions and compliance with safe cyber measures as priorities.