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3 Important Benefits BFSI Organizations Experience from Capturing Customer Insights
By Dennis McDonald
Data is the new oil in the digital era. And much like oil, there's a lot of it, and it's largely worthless unless you have a way to capture, process, and turn it into a usable asset. For banking, financial services, and insurance (BFSI) organizations, turning customer data into insights should be a top priority in 2021.
If you haven't started, now is the time. According to a recent PwC report, roughly 75% of banks are already investing in more customer-centric models with the goal of mining customer insights to provide better experiences, mitigate risk, and identify the riskiest customers. In short, they're putting in place the right people, processes, and technology to turn data into a revenue driver. BFSI is a competitive landscape, and early movers are reaping the rewards of their focus on customer data.
It's admittedly not an easy task. International Data Corporation (IDC) reports that more than 59 zettabytes (ZB) — or 59 billion terabytes — of data were created, captured, copied, and consumed in 2020. That's up from 33 ZB just two years prior. When you're working with a proverbial geyser of information like that, the biggest challenge can be knowing where to start.
Turning Data in Actionable Insights: Time to Consider TOM Transformation
Rethinking your Target Operating Model (TOM) may be in order if your priority is to leverage customer data. This is especially true if you have legacy processes, systems, and mindsets that may be slowing your ability both to capture that data and make sense out of it.
Many banks, for example, are decentralizing or democratizing their governance structure, refocusing authority at the local or regional level. As a result, they can:
- Break down data silos: If your data is trapped in one department or business unit, it is inaccessible to the rest of the organization. As a result, critical information about a customer may be well-known by one group and unheard of by another, meaning your organization risks creating a high degree of dissonance in that customer's experience. Democratize your governance structure to democratize your data.
- Increase decision-making speed: When silos disappear, key decision-makers are afforded a more holistic view of the organization. The adage "you can't fix what you don't measure" applies here, with a modern customer-experience twist: You can't improve how you serve customers if you don't understand what matters to those customers in the first place. Arm your decision-makers with the data they need to make decisions with confidence.
- Deliver value and competitive edge: Democratizing customer insights at all levels of the organization empowers every employee to make decisions about everyday work tasks focused on delivering customer value.
Developing a strategic vision for how you'll make the most of your data is critical for making your customers the primary focus across the organization. Our latest whitepaper, "What's Keeping the C-Suite Up at Night: 6 Imperatives in Banking, Financial Services, and Insurance," unpacks the complexities of capturing customer insights, as well as digital transformation, becoming Agile, improving cybersecurity, meeting regulatory and compliance mandates, and staffing.
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