By Peter Delano, Practice Manager, CEB TowerGroup
On March 18th in NYC, LiquidHub is hosting an thought-provoking financial services event and cocktail networking session, Operating at the Speed of Thought. At this event, I along with LiquidHub’s Ravi Kalakota will address present solutions to the challenges faced by today’s fast-paced financial services industry. Specifically, my discussion will focus on how to enhance the way financial services organizations analyze, manage and utilize data to drive better business decisions and strengthen client engagement and retention.
In CEB TowerGroup’s most recent financial services technology survey, we asked industry executives about the maturity level of seven different data processes, and four major data functions in their organization. Survey respondents agree: few data processes are fully mature, and executives express low execution confidence in the four major categories of data functions. In fact, less than a quarter of respondents expressed high confidence in their company’s ability to execute data integration, data visualization, data dissemination, and data analysis activities.
With global data volumes estimated to rise by 60% annually over the next few years, financial services employees increasingly need to be able to gather, interpret, and act on data as it becomes a fundamental aspect of their role. But for more than half of workers, information from other sources in their organization is often in an unusable format. Even when data is available, only 38% of employees have the processes and skills necessary to accurately inform their decision-making. These challenges cause firms to struggle with the implementation of the emerging wealth management model focused on goal-based planning, which requires advisors and their support teams to have an accurate view client assets, and the ability to use this data to accurately calculate and report on a variety of holistic financial goals.
At a broader level, wealth firms, asset managers, insurance and providers are also struggling with the IT alignment and infrastructure changes necessary to implement a successful data management strategy. Only about a third of firms have a fully-aligned data strategy where the business line and enterprise IT collaborate on initiatives to drive business objectives. With firms increasingly leaning on data-driven insights to inform future strategy, business leaders need to ensure that IT initiatives are emphasizing not only the data and analytics capabilities necessary to support advisors and front-line employees, but also the high-level metrics that inform executive decision-making.
CEB research on data management indicates that getting the maximum value from data depends on three primary factors: accessibility, quality, and employee capabilities. Innovative financial services providers are working at each step of this process to unlock the full potential of data management at their companies. Examples of these solutions include creating a quality-controlled, indexed reporting catalog for all employees to use, an integrated customer information repository for service, transaction, and account data, and an analytics process for targeting cross-line client prospects.
My upcoming presentation “Actionable Insights from Data: Better Outcomes for Business Stakeholders and End Clients” at LiquidHub’s Operating at the Speed of Thought event, will dive deeper into these data challenges across the industry, focusing on both internal and external audiences, and show how leading firms are moving towards deriving more actionable insights from data assets.
For more information and to register for LiquidHub’s Operating at the Speed of Thought Event featuring Peter Delano from CEB TowerGroup and Ravi Kalakota from LiquidHub click here.