Executives know their community financial institutions have a lot of data. They also know they can use this data to deepen customer relationships, grow the institution’s revenue and increase efficiency. But sometimes, they’re not sure how or where to start, or how to keep momentum on these initiatives going.
The process of extracting, cleaning, formatting and analyzing data can be a complicated and expensive proposition for banks and credit unions, especially for those at the beginning of their data journey. Sixteen percent of respondents to Bank Director’s 2024 Technology Survey reported not having a data strategy.
Data strategies are complex projects. Executives need to couple data governance and internal expertise with newer and more affordable data storage and analytics technologies to leverage this information into applications like personalized customer recommendations and more efficient operations. And there’s always room to get better. Thirty-four percent of respondents to Bank Director’s 2024 Technology Survey said they were in the early stages of their data strategies, using data in just a few areas of operations, while 40% reported they use data in several areas of their institutions but still saw significant room for improvement.
“Smaller banks now have an opportunity to start seeing the big picture about their clients like big banks do,” says Andy Zinn, chief innovation officer at Wealth Access. “Even though they don’t have the $100 million a year tech budget, they’re able to … broaden the scope of what they can see within their own four walls.”
In “Crafting Your Data Strategy,” sponsored by Wealth Access, technology executives can learn about the strategic importance of these projects and what they’ll need to do to execute them successfully, including:
• The opportunity for smaller institutions.
• How to think about use cases and problems to solve.
• Understanding the technology.
• Creating a data governance policy.
• Managing the compliance, cybersecurity and third-party risks.
• A next-steps checklist.
This report is designed to serve as a guide to help financial institutions craft an effective data management strategy. But as the experts in this report advise, the most important step is picking a straightforward data project and then just getting started. Click here to read the report and get started on your journey.
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