What's this all about?
Whether banks are acting on it or not, data has become the key battleground in financial services. The winners will be those banks that use data to deliver personalised experiences to their customers precisely when they need it. In the following article, Paul Brennan outlines how using the right data warehouse can give your bank the armour it needs to succeed.
Read on if you:
- Want to understand the opportunity being lost by financial services companies when it comes to data and why many banks have been slow to get onboard
- Want to get a high-level view of how a data warehouse works
- Take an interest in the future of banking and data
Having access to rich data and analytics is critical for any business looking to stay relevant and competitive in the digital age. And banks are no exception.
However, that doesn’t mean they are taking action.
While organisations across all industries are beginning to understand the value of extracting insights from their data, financial services have quite a bit of catching up to do. According to a report by the European Banking Authority published earlier this year, the use of sophisticated analytics and big data models in the banking sector is at best “limited”.
And that’s being kind to banks.
So, despite being a sector awash with customer information, why does the utilisation of data among financial services companies remain in its infancy?
There are three main reasons, as I see it:
- These organisations don’t fully understand the value of their data and often see it as a cost/compliance burden.
- They are unable to access it properly or the data is unreliable.
- They don’t know how to utilise or monetise the data effectively because they don’t have the proper skills or structures in place.
At LEVERIS, when we started out, we understood that data would become the key battleground in financial services in the years to come. That the winners would be those organisations that utilise data to deliver contextual and personalised experiences, products and services to their customers precisely when they need it.
With this in mind, we invested significant time and effort to ensure we had the best possible data structures in place to support this vision and our clients’ future strategies. That meant developing a world-class data warehouse to gather, store, and make coherent, an organisation’s information.
What we built and what it solves
Firstly, let’s define what a data warehouse is. It can be described as a central repository into which data flows and where data is stored to generate query results to multiple users at the same time.
So what did we build? The LEVERIS Data Warehouse (DWH) is a resource that enables our clients to deep dive into their data and report comprehensively on their business. It comprises both current and historical data obtained from throughout the LEVERIS platform, which is optimised to respond to analytic queries and processing at speed.
The LEVERIS DWH takes an ELT (Extract, Load, Transform) approach to data, preferring it to more traditional processes due to its reduction in load times and its suitability for big data initiatives – the kinds required by banks.
Significantly, the LEVERIS DWH provides a single source of truth when it comes to information about a bank’s operations, its products and its customers. That means all data from applications related to an individual customer – whether internal, external or third-party – is stored in one place. We refer to this as Single Customer View, something you can read more about in our previous post How Single Customer View Can Help Solve Your CX Problem in Banking.
So what makes our data warehouse stand out? As well as the aforementioned attributes, its entire implementation is carried out by LEVERIS. That includes architecture, design, development and integration with primary and operational source systems. It means we know the architecture inside out and don’t rely on third-parties to make amends if and when necessary. We give you a full end-to-end view of your customers and their relationship with you, as well as full control of your data.
What are the other benefits?
There is a wide range of benefits – for both client and end customer – to gain from having your data captured, stored and processed in the LEVERIS DWH. Here’s a glance at some:
01. Trust in the data
Data updates are propagated throughout the organisation regardless of what section of the business the change occurred. This enables the LEVERIS DWH to deliver a single source of truth for the whole organisation.
02. Customer insights
The extensive LEVERIS data model grouped into logical dimensions enables clients to better understand customers and their behaviours. This leads to an enhanced customer experience, better products and services, and improved communication.
03. Speed and flexibility
Analytical queries are fast and responsive. Information can be delivered in real-time, additional marts can be spooled up quickly and external data sources can also be incorporated.
04. Improved compliance and auditability
Well-structured data and information enable our clients to know where their data is and how to access it when needed.
05. Advanced analytics
Data marts are accessible and can easily serve as the source of data for advanced analytics and AI/machine learning.
06. Data monetisation
The LEVERIS system, supported by the DWH, is architected to support new ways of revenue generation through data monetisation. The data combined with the event-driven nature of the platform can be used to execute differentiated customer experiences and interactions.
We believe that the LEVERIS DWH will play a significant role in our clients’ growth and profitability. By using our platform and leveraging the capabilities of a state-of-the-art data warehouse, they can adapt their model, utilise their data and generate much improved returns. It means they’ll be in a position to:
- React to operational and market conditions rapidly in a tactical way.
- Plan strategically for the mid- and long-term more effectively, at a product, sales and operational level.
- Enable A/B testing and cohort analysis with a better understanding of campaigns, communications and trigger-based customer behaviours.
- Support next-generation use of data, particularly information used to support new revenue streams and business models that enhance the customer experience.
Taking the data warehouse path
Many banks still don’t view data as the future and even if they do, making a sudden shift in strategy to reflect this is far from simple. High-quality data warehousing – as part of a migration to a wider digital-first and modular banking platform like LEVERIS – will get them on the right path and, ultimately, serve as a gateway to their future success.