Capturing the value of data in banking

Data and analytics are nothing new — companies have been using data to run operations, analyse customer behaviour, optimise pricing and manage supply chains for decades. What is new is the pace of change and the degree and speed with which technology companies have reshaped the economy and disrupted industries. Data are at the heart of this new digital economy — and while banks have enormous amounts of data about their customers’ behaviours, banks have been slower to adopt data-driven cultures and maximise the value of this asset. This paper addresses both the internal and external barriers that banks have faced as the digital age has emerged over the past decade, and suggests ways in which banks’ investments in addressing regulatory and compliance issues to reduce risk can now be used to better serve customers, improve revenues and increase efficiency. Banks are in the early phase of generating value from data, and this paper highlights case studies of banks that have captured value through new uses of data. Further, banks must address the need for culture change to maximise the potential from data.