Financial firms need good customer data

The entire nature of banking engagement is changing, with firms able to delve deep into what their consumers want and offer services to match. Consulting firm Novantas recently explained the new challenges and opportunities facing financial institutions as a result of their improved access.

The source stated that having so much information can be difficult to deal with. Before financial organizations can engage with clients, they must perform a host of data quality processes and sort the information into management systems and warehouses. The same inputs that could make firms effective could also slow them down.

Novantas suggested a highly targeted and objective driven approach to information management. Instead of treating everything equally, firms can apply business cases to their data and find out which facts relate directly to activities that can help accomplish specific goals. Through a focus on problems and solutions, companies can avoid getting bogged down.

A more nuanced view of customers could be just what banks need to succeed. According to the Financial Brand, companies should begin to differentiate between groups when making promotional pitches. This behavior is close to how retail works, rather than the scattershot approach currently used by financial firms.