How Financial Services Companies Are Striving Through The Data Age
With experience in account management, corporate account management, and regional sales direct, he is leading the firm.
With the advent of the Data Age, the digital transformation journey of organizations over the last two decades has now taken a new turn. As we understand, there is no fixed definition for Data Age, however, it is safe to call it as the evolution of data becoming a core enabler for decision making in every department of every business.
Unfortunately, the majority of organizations are not ready to face the Data Age. The overwhelming rate at which data is being generated has left organizations in a vulnerable state, as they are unable to exploit the potential that data offers. A recent research revealed that only 14 percent of IT and business managers are prepared for the imminent wave of new data. Moreover, a whopping 86 percent of business leaders have shared that their businesses are unprepared for the Data Age.
Preparing to embrace new data sources
Analytics over the years has been talked about as a differentiator for organizations, enabling them to stay ahead from their competition. The Data Age is expected to make the process more complicated with the expansion in the data sources from emerging technologies including AI/ML, 5G, IoT, edge computing, blockchain, AR/VR into an already existing data universe. With this explosion of data, organizations across verticals are innovating on an unprecedented scale. That said, the relevance of collecting and analyzing the available data to derive meaningful business insights has never been more critical for business performance and survival.
Interestingly, financial services companies seem to be better prepared than organizations from other verticals, as the volume of data they process on a daily basis has always been higher, comparatively. They are therefore, better equipped to sustain the impact of the new Data Age and have a higher command in leveraging technologies such as AI and ML. The same research also revealed 52 percent of respondents from financial services felt they had an expertise or high understanding, compared to 42 percent companies, overall. Furthermore, people from the financial services sector who are directly working with the data generated expect the volume to grow faster than all other industries, by 5.7x on average. NASSCOM has recently acknowledged that the data analytics market in India is expected to touch $16 billion by 2025. This is only possible if organizations across the financial sector have a completely transformed data-driven strategy for an enhanced customer experience and seamless business operations.
“Financial services companies are most likely to create competitive advantage by harnessing their data and are way ahead in making the best from the opportunities that come with the new Data Age”
FSI companies leading the way in Data Age
Financial services companies are most likely to create competitive advantage by harnessing their data and are way ahead in making the best from the opportunities that come with the new Data Age. 56 percent of financial services companies feel they are already prepared or are preparing for the coming data wave and two thirds (66 percent) had low or no anxiety about it. Relying on cloud computing capabilities for financial services companies on the other hand is still a concerned area as security of data is still a major issue. Nonetheless, it is also expected to be the biggest driver for boosting data analytics amongst BFSI companies in the years to come. The sector is super sensitive and holds almost zero tolerance to data breaches and leaks and therefore it is all the more important for organizations to dial up their cyber resilience capabilities.
While they are the most capable to sustain the Data Age impact, financial services companies need to build a data strategy for their business strategy which meets the requirements of a modern day working environment. This is essential not just to stay ahead of competition but to ensure survival in the Data Age. Consumers are increasingly driven by digital experience and brand loyalty, which means that the ability of financial services companies to harness new technology and use all available data to truly understand digital experience is critical. It is therefore important to have an integrated infrastructure with all business units to be upgraded to a data led infrastructure. This will make it a lot easier for organizations to derive crucial business insights from the data being generated across all the verticals.
It is time to embrace the Data Age as an opportunity and be better prepared by using all available data to solve the most important business challenges and build resilience.