Leading-edge banks will also gain the ability to integrate customer data from external sources. That might include data from the customer’s e-car, smart home and online shopping.
Quality over quantity
What’s holding back many banks from making more progress? One issue is their mistaken belief that more data is good data. The fact is, many banks already have an abundance of data. The question is, then, do they have the right data? And are they using that data for decision-making and, even more important, strategic and tactical action?
The evidence suggests not. In an Economist Impact survey, six in 10 executives said they’d canceled a digital project for lack of the right data.
Research by DXC Leading Edge has identified three primary states that are supported by data. Each stage has its own unique data requirements:
- Discover: Here, a bank seeks information and engages in new methods to help a company evolve and advance. This means looking to better understand your customers and identify new products and services that meet their needs.
- Develop: In this state, banks are making strategic decisions, and they can use data to balance risk and reward. Done right, data-driven action supports growth and drives higher revenue.
- Defend: Once innovations have been delivered to the marketplace, a bank needs to protect its resources and maintain its overall health and viability. This includes meeting compliance, legal and regulatory requirements.
Transform to evolve
For many banks, reaching their customer-data destination may require them to first take a virtual step sideways, in order to transform their core systems. A bank that fails to do this may find the path to creative evolution blocked.
Most banks will need to transform their core bank systems so that they’re able to better transact, manage risk more dynamically, conform smarter and offer efficiencies to reduce system debt and release costs. These goals may require actions that include moving some systems to the cloud, automating others, and even replacing and updating some legacy systems or be smart when sweating assets.
There’s another issue that banks need to be aware of. The same data that empowers banking customers also makes it easier for them to switch banks. Customers can move from bank to bank, jumping between different products. And because they can quickly onboard those products, once they’re done, they can simply throw them away. Clearly, a balance needs to be achieved.
How DXC can help you
DXC Technology has decades of experience in implementing advanced systems that manage data for many industries, including banking and capital markets.
DXC professionals help banks build modern core banking platforms that can take relevant data and insights and embed them into business processes, so the right person at the right time has access to the right data and insights to make important decisions in a data-driven way. DXC does this at scale, so data-driven insights can translate into business outcomes.
