Banking Analytics Tailored to Your Business

banking analyticsIt’s no longer a secret that personalization is key to improving your customers’ experience. Whether it’s supporting existing clients, cross-selling and upselling to them or sourcing new ones, the more you know about them the better you’re able to reach them. In the financial industry, however, much of the available data comes in sets accessed via analytical tools that operate in silos.

Here’s how to find a tailored system that helps you get the most out of your analytics by giving you the specific information you need, when you need it.

Be Flexible

Analytics products aren’t all created equal, and most core system vendors offer fixed solutions that consist of the analytics they believe will be most useful to your financial institution. In many instances they are correct, but for institutions offering a range of products with unique attributes like yours, fixed solutions often miss the mark on the data you need. Look for a flexible solution such as JOHO OneSource™, which pulls data from across departments to build a customer profile focused on the questions you need to have answered at the time.

Skip the Silos

Financial and purchase data is typically stored in silos, which means the average analytics deliver information based on those same silos. To get banking analytics tailored to your business’s primary activities, you need to sidestep the silo trap. Avoid buying core and ancillary system tools with a single analytics focus, which could eventually result in your needing five different analytics tools to cover various focus areas. Implement a tool with a single-source analytics platform that draws data from multiple sources, combines it, and produces intelligence that’s usable and interpretable for your specific purposes.

Minimize and Simplify

To remain competitive, modern financial institutions need business information for marketing, reporting and regulatory purposes. Just as having a lot of data can become overwhelming and render the intelligence useless, having too many analytics tools can end with reverting to manual processes (such as Excel) to check for delinquencies and other issues.

You can overcome the conundrum of “too much useless information” by installing a simple, cross-system platform that functions as a data warehouse. This type of system incorporates information from multiple sources, performs complex queries, and delivers reports based on a single source of truth. It also eliminates the need to have several specialists who each pull data from a particular tool, simplifies deployment, and reduces the training requirements for users across the institution.

Take a Consultative Approach

Instead of settling for a standard analytics package that provides information the vendor thinks you need, look for a system based on a consultative approach. Find an expert in enterprise systems who listens to your pain points, helps you to ask the right questions and find the right answers.

At JOHO, we take the time to get to know your business needs and goals, develop a solution to meet them, and help you assess whether you’re ready to implement it.

 

What to Look for In a Core Evaluation Consultant

A bank’s core processing system is one of the largest single capital outlays for financial institutions and should not be a purchase decision that’s made overnight. Banks’ executive teams need to start looking for new processors 18-24 months before their current contract expires. Given the price point for new systems, even companies satisfied with their current vendor are conducting extensive due diligence before deciding whether or not to renew or move to a new provider. This is an exhaustive, time-consuming process, and unless your bank has all the requisite skills in-house, you’re likely to outsource the management of the many required tasks.

Here are attributes you should look for in a core consulting provider:

An Objective Position

Your core processing consultant should take a neutral position when it comes to vendors, instead of holding predetermined notions of what vendor you should use. Unfortunately, many consultants have preset notions surrounding which vendors you should choose. A better approach is to identify your specific needs through discussion and interviews. Once the consultant understands your pain points and long-term business strategy, they are more likely to find a vendor to meet your needs. Look for a consultant with no affiliations to potential vendors and ask them how many different vendors and products they have recommended to other clients. This will ensure whether or not the consultant conducts an objective assessment process.

Expertise in Core Banking Applications

Banks typically work with a core processing vendor for 10 to 15 years. Finding a new vendor is complex, and the more experience your consultant has with core banking applications, the better. Choose a core consulting advisor with enterprise software experience who understands the intricacies of the banking environment. This will provide the resources that can help your organization identify your requirements and provide guidance on finding and implement the correct solutions.

A Well-Developed Process

Performing the due diligence required to select a new core processing vendor isn’t a task for just any project manager. To secure expertise in areas where you need it most, select a business partner with a well-developed process comprising formal planning, project management, identification, and implementation of core banking applications.

Extensive RFP Experience

Appoint someone with extensive experience in managing the RFP (Request for Proposal) process. Make sure they are capable of:

  • Developing required documentation and sending it to vendors with the right capabilities
  • Reviewing and scoring responses according to predetermined weightings
  • Presenting the financial institution’s project team with appropriate options
  • Conducting thorough due diligence to identify two or three vendors to make presentations onsite to your leadership
  • Reviewing detailed pricing and proposals revisions, re-scoring, and making appropriate recommendations

Once a vendor is selected, your consultant should also be equipped to handle contract negotiations with the vendor on your behalf.

Knowledge of Ancillary Systems

Every financial institution is different, and that means different approaches and different ancillary services exist. If you have a specific need for mortgage processing, for example, and the best option for you is a specific ancillary system, then your consultant should be prepared to direct you accordingly.

Finding the right core consulting professional is challenging, but if you contract a professional firm with prior enterprise application experience in banking, you’ll have a seamless transition to your new system.