Last week I had the chance to travel to New York City for an executive briefing on big data. In the financial services industry, we know that data is the business. Market volatility and regulatory demands are making data more strategic than ever before to the industry. The availability of new data types, such as online customer reviews, customer sentiment analysis, socio-political events, or macro-economic trends is providing a compass of sorts, helping risk managers improve their oversight of risk positions and regulatory compliance, and giving CMOs a better understanding of customer preferences.
In recent years, we’ve seen two key roles in financial institutions rise to the forefront of business strategy: the Chief Risk Office, and the Chief Marketing Office. Although facing different priorities, these two executive offices have a common area of interest as they work to transform the financial services business: data analytics. While the CIO’s office continues to be just as important as before (maybe even more so as disruptive technology and consumerization trends reshape IT priorities), the industry is fast realizing that bringing data-driven insight to every decision maker in a financial institution in a timely manner can have a transformative impact.
Microsoft recently commissioned an IDC study (results in infographic below) to better understand what businesses globally—including the financial sector—stand to gain by propagating such a data culture across their organization. The numbers were almost unreal.
Realizing the full potential of this data dividend will require that financial institutions no longer settle for status quo. As conversations in the C-suite of major financial services organizations begin to take off about how to get more “data smart”, a few guiding principles to keep in mind below:
Whatever your business imperative, the right data—big, small, or any other kind—surfaced at the right time and with the right decision maker to drive impactful action is your ticket to a piece of the $309 billion data dividend opportunity that our IDC study identified. Unsure where to start? See how Microsoft’s big data and analytics solutions can enable your business transformation here.