Where Is Analytics Going in Financial Services?By Guest Author | Posted 2017-02-06 Email Print
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There are a handful of broader analytics trends that have special implications for financial services institutions. These four are especially worth noting.
However, compared with their peers in other industries, financial institutions are well-positioned to leverage their vast repositories of customer data—whether that involves credit card usage, bank account transactions, ATM usage and e-transactions, insurance policy endorsements, claims experience, life events (births, marriages, divorce, home purchases) or other personal information.
But these organizations should be careful not to confuse effort with results. Customer experience and satisfaction is the ultimate litmus test of effective personalization.
Expect advanced analytics to play a big role in these efforts, along with new privacy regulations that are likely on the way. Customers are typically willing to forsake some level of privacy if they receive value in return (like offers, products, features and deals), but so far, the equation does not appear to have reached a balance that's favorable to many customers.
The Cloud Gets a Security Lockdown
Cyber-security continues to be a recurring macro trend. As financial services firms move more of their data and analytics to the cloud—including some of their most sensitive and valuable information—they’re experiencing a whole new security challenge. How can they gain the agility, efficiency, scalability and speed of cloud-based capabilities while also strengthening their ability to mitigate and even anticipate cyber-attacks?
Expect this issue to be front and center this year as banks, insurers and others in the financial services industry look to strike a balance between new capabilities that can deliver new levels of service and efficiency and security requirements that can protect value and reputation and prevent breaches that disrupt consumer and business confidence and greatly concern government regulators.
Yes, there are other important trends. And there are some that will likely emerge from nowhere, as surprises are always a possibility in this field. But if you’re in financial services and want to know what to prepare for on the analytics front, these four trends are a good place to start.
John Lucker is Deloitte’s global advanced analytics market leader, as well a leader of advanced analytics for Deloitte & Touche LLP.