Hoosier Banker 37 OPERATIONS / TECHNOLOGY Advanced Data Analytics As with many businesses, banks have a plethora of data that is typically siloed across multiple systems throughout the organizations. Aggregating and integrating this data can be difficult and time-consuming, if not nearly impossible, such as with transactional data. While customer interactions are becoming increasingly digital, community bankers are challenged with maintaining the competitive advantage that local, personalized, white-glove service has traditionally afforded them. At the same time, they struggle to achieve the valuable business insights that untapped data could provide to improve their operations. In its 2021 Banking And Capital Markets Outlook: Strengthening Resilience, Accelerating Transformation report,* Deloitte points out that “hyperpersonalized services that can factor in a customer’s financial wellbeing holistically should form the core of customer relationships. To achieve this goal, banks can integrate their disparate data architecture across lines of business and functions and combine it with artificial intelligencedriven analysis to create a 360-degree view of customers.” Throughout the financial services industry, technology leaders are adopting ever more advanced analytics and artificial intelligence/machine learning (AI/ML) solutions by leveraging the data generated both inside and outside of their organizations in a way that delivers actionable business insights. Data platform and predictive analytics solution providers are the primary enablers behind many next-generation initiatives and are managing the lion’s share of this work for community banks by extracting strategic insights, prioritizing market share, expanding products/services and monitoring key performance indicators to maintain operational excellence. It is unlikely that midsize banks will “out tech” large banks and fintechs on their own. With the right partners, however, they have an opportunity to thrive by redefining the local experience and digitally transforming how they operate. [[[ HIPSMXXI GSQ YW IR MRWMKLXW MRHYWXV] ƤRERGMEP WIVZMGIW ƤRERGMEP services-industry-outlooks/banking-industry-outlook-2021.html By partnering with a modern data analytics provider and using a side-by-side model, bankers can leverage their local knowledge with personalized customer intelligence to regain competitive advantage. With AIpowered data analytics, bankers can learn more about their customers – based upon deep learning models that are informed by data – to grow their lifetime value, predict churn, and understand which products to introduce to customers and when. Bankers can gain valuable business insights to improve customer relationships and strategically deliver new products and services through data-driven campaigns so that they can target, discover and offer the right services to the right people, at the right time. Advanced analytics cleanses data for accuracy, ensures data governance across the organization, and employs AI and ML to glean customer intelligence from volumes of transactional data created in the business. With daily updated analytics, bankers can find the answers to questions such as: % Which current customers have a loan but not a deposit account? % Who has a mortgage or wealth account with a competitor? % Which customers with credit scores above 700 are most likely to buy home equity lines of credit? % Which loans were modified from the previous day? % Which HELOC customers are utilizing less than 25% of their lines of credit? The ability to answer such questions makes it possible to deliver timely personalized messages to customers, make data-driven product recommendations, measure campaign return on investment and grow net dollar retention. Harnessing organizational data is the key to helping community bankers discover patterns, insights, trends and usage strategies so they can strengthen their position in regional markets and compete more effectively. HB Katie Horvath 'LMIJ 1EVOIXMRK 3JƤGIV Aunalytics Katie.Horvath@aunalytics.com Aunalytics is an associate member of the Indiana Bankers Association.
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