Data analytics is big business, but not just any solution will do in financial services
This summer, data analytics hit the big leagues. As I recently shared with InvestmentNews, Google and Salesforce spent tens of billions of dollars purchasing data analytics leaders Looker and Tableau, respectively.
The deals, $2.6 billion for Looker and a staggering $15.3 billion for Tableau, are among the largest either company has made to date. Meanwhile, rumor has it that both IBM and Microsoft may look to expand their own analytics offerings.
The money being poured into the market affirms the value that data pipelines and analytic tools bring to business in all major industries. But to truly deliver insight on that data at the point of business impact, solutions must be tailored to meet the specific needs of vertical industries, including the highly regulated financial industry
Nowhere is data relied on more heavily than in financial services, which both requires and generates enormous amounts of data. As a consumer-heavy industry, financial services produces a huge amount of customer data. In addition, the compliance processes of this heavily monitored industry generate massive additional amounts of data.
The Future of Financial Advice
Actionable, accurate information provided by sophisticated data analysis, on comprehensive data, can provide insights into customer needs, preferences, and strategies allowing insurance agents and wealth management advisors to provide their clients with a level of service before unimaginable.
Based on targeted analytics like that that provide helpful insights on both client and field representative behaviors that influence sales, advisors and agents can easily engage clients at all stages of the customer cycle. Smart triggers can alert agents/advisors to potential problems early on, preventing policy lapses or lost clients, while other features streamline or eliminate tedious tasks and data entry, enabling advisors and agents to focus on high-ROI activities.
How to Get There
Every business needs a data and analytics strategy but as we’ve seen, not just any solution will meet the needs of financial services firms. Financial services organizations need to consider the hurdles posed by adherence to strict regulations. Compliance must be built into the solution, not just an add-on.
Fintech companies that understand the complexities of the industry and can integrate with all available data sources represent the best possibilities for the future. We can make the future of financial advice described above happen now. The resulting next-level insights will propel businesses forward as a personalized and more human experience pairs with the best of what technology can automate and optimize.
It’s a pivotal moment for analytics. As intuition is replaced by information, the impact of today’s decisions will set the course for tomorrow’s outcomes.