The criticality and force of data are underpinning an evolution in the global banking landscape. In the diverse, growing major economies, data has proven to be a major challenge — but also a massive opportunity for banks that can create a “data advantage”, according to a recent Oracle report.
Banking models and services are being broken apart, made simpler, and streamlined – but not always by the big incumbent banks. The pandemic has accelerated digital adoption, and consequently, fintechs and major platform tech players have demonstrated that they can leverage technology and data to enable services and reduce costs to deliver financial services in more agile, accessible, and user-friendly ways.
To remain competitive, banks will need to collect and converge all their data from multiple sources into a single database, then cleaning, monitoring, visualizing, analyzing, and interpreting the data to transform it into intelligence.
This report from Oracle studies that win-win relationship in-depth and the five trends identified: customer experience is now vital; customers today have plenty of choices; collaborate to compete; reining in operating costs; and operational risk takes the spotlight.
Some of the case studies highlighted in the report are: BBVA increased conversion rates by 30-40% with marketing campaigns; Allied Bank reduced its cost per transaction from $3-4 to just 40 cents; and Radius Bank saved millions in customer deposits and increased its Net Promoter Score by 20%.