Pub. 9 2020 Issue 3

The CommunityBanker 14 By Mary Gill Hundley, Chief Administrative and Risk Officer, KlariVis Data Analytics: Buy Versus Build I t is the age-old question: Buy vs. Build? How do you know which is the best strategy for your institution? As a former banker who has made the recent transition to a SaaS com- pany executive, my answer today differs significantly from the one I would have provided five years ago. Today, I have a deeper understanding of the benefits, challenges, road - blocks and costs associated with building a data analytics solution. If data analytics is on your strategic roadmap, perhaps the insights shared here will aid you in making this significant decision for your institution. Frustration with accessing bank data is not a new con- cept. For years, bankers have realized data is a significant untapped asset, but many institutions have not yet attempted to solve their data challenges. Interest in data analytics continues to intensify and has only been amplified in the era of COVID-19, as it has become increasingly apparent that outdated methods of distributing reports and information do not work well in a remote work environment. Bankers seeking ease of access and speed of de- livery are looking for innovative ways to procure information needed to make timely decisions or gain a competitive edge. How will you solve the data conundrum? Some bank lead- ers are looking to their IT department to resolve data challeng- es. Alternatively, other executives are seeking out a fintech to partner for a solution. What is right for one institution may not fit with another’s strategy and business philosophy. A good place to start this decision journey is with a business case analysis that considers: • What does the bank want to achieve? • What does the bank board want to solve? • Who are the users of the information? • Who is currently creating reports, charts, and graphs in the institution today, and is this a siloed activity? • What is the timeline for the project? • How much will this initiative cost? • How unique are the bank’s needs and issues to solve? Assessing how much time is spent on meaningful report creation and whether that task is the best use of a specific employee’s time is critical to the evaluation. In many cases, highly compensated individuals spend many hours creating reports and dashboards, leaving them with little time for ana- lyzing and acting upon information derived from the reports. F E A T U R E