Financial institutions are beginning to realize that by capturing data available to them, implementing analytics that deliver enhanced enterprise reporting is possible. This offers significant value for the business, helps mitigate risks and streamline the customer’s experience. The perception of price is problematic, however, with many institutions believing this type of analytics is either out of reach or simply not cost effective. Let’s assess the cost-to-value ratio and determine whether this thinking is true.
The Coming Storm
Deloittes’ Investment Management Outlook for 2017 recently identified financial services as the industry most likely to face challenges from disrupted buyer behavior by Millenials. Predictions are that changes in the industry will be “seismic” both in the U.S. and globally, and many institutions are building specialized teams and innovation centers to focus on overhauling their existing infrastructure. This makes the availability of information critical over the next 5 to 10 years, for any institution that wants to keep pace with the market.
At the same time, the current emphases on inbound marketing tactics and customer relationship management support a growing impatience with inadequate records and reporting, creating the “perfect storm” circumstances. Financial institutions need data; they need detailed customer analytics, they need them easily and affordably, and they need them now.
We’re accustomed to the fact that demand pushes up price, and that’s the opinion for analytics too. Happily, it isn’t always the case. The cost of implementing a solution such as JOHO OneSource™ is surprisingly commensurate with the size of your financial services operation. Calculations show for a small institution the cost would equal that of a single teller. In a larger environment, this might increase to around the cost of a financial analyst, and of course as an operating expense it’s as fully tax deductible. Add to this the quick implementation with limited involvement and effort from your employees, and the prospect begins to seem particularly bright.
The solution incorporates data from a range of internal and external sources into a single database. By using a product that offers enhanced enterprise reporting, you’ll get access to the intelligence you need, informed by predictive analytics based on the freshest, most up-to-date input.
Benefits of Enhanced Enterprise Reporting
The primary benefit of this type of solution is the ability to manage the “big picture,” which helps institutions make sense of it all. If a client has three accounts but stops using direct deposit, for example, correlating multiple systems enables the institution to identify insights they might otherwise miss.
Other benefits of using analytics include:
- Managing risk through the ability to analyze factors affecting clients, such as fluctuations in the housing market
- Identification of patterns indicating fraudulent activity
- Understanding customer profitability, which guides marketing and product development choices
- Improved regulatory compliance through analysis of client behavior.
An affordable, managed solution not only provides the intelligence you need to grow your business, but reduces the workload on your employees. And when you add that fact to your cost-to-value assessment, there are few counter-arguments that can possibly hold water.