Big data and its ‘analytics’ are booming. Already today they belong to the most important drivers for innovation within financial services. At least as important a driver for change as the increasing compliance requirements. The question is not which goldmine of data your bank or insurance institution is sitting on, but rather, how much of it have you already mined? How finely do you analyse customer data? More importantly, to what extent do you anticipate what the customer might need in order to approach him in the right way?
Data and algorithms are inextricably linked to process improvements, organisational restructuring and innovation in the financial sector. The greatest challenge lies in linking the data with the targeted provision of services. Because if you utilise the available data in a smart way, you can work more efficiently, be more productive, be able to bind new customers and be better able to help existing customers. That is what you are doing, right?
Secure, protected and privacy-proof
The more opportunities data offers, the more cyber risks there are. After all, there are two sides to every coin. Cybersecurity is key, just as data protection is. It is important to make good assessments and to set priorities. In practice, this means working in a GDPR-compliant manner, clearly identifying the ‘crown jewels’ and tightening up on the vulnerabilities. To put it bluntly: “If you leave the front door open, you shouldn’t be surprised if someone breaks in”.