Data integration in BFSI institutions help processes to gain meaningful and valuable insights from customer data. In order to become completely data-driven, banks and other financial institutions are integrating such processes into their operations, thus improving their business agility and effectiveness.
Data integration techniques, when combined with powerful business intelligence, help these institutions engage customers across all channels while receiving a complete overview of their behavior. Data integration tools help banks to study their customers’ needs and expectations, thus allowing them to boost their sales and services. Such solutions also assist banks in gaining a better understanding of multichannel customer relationships.
Data Integration Scope in BFSI Sector
Customer experience has drastically changed across the banking and financial sector due to the digitization of traditional retail banking business models. Clients are increasingly relying on digital and mobile devices to avail banking services. While banks work hard to meet the increasing demands of their customers, they must also differentiate themselves from their competitors in the digital marketplace. Through a more integrated view of relevant data, banks can work to thwart financial crime and maintain a strong brand image.
Data integration relies on three factors for success: high-quality data, useful analytics, and data visualization. Data integration can be deployed to improve customer retention rates, thus making the financial institution a customer-centric organization. The migration and integration of data across digital spaces have empowered banks with unparalleled data search and discovery capabilities.
Data integration allows a financial institution to gain improved insights by monitoring its customers’ journeys across its websites, tellers, contact centers, and branches. Rather than investing in advertising, many leading banks use data integration techniques to emphasize contact optimization. Such techniques help banks to align their social media efforts with core business strategies. The best insights from data can be derived only when banks make use of a proper data integration strategy. Through the right data integration strategies, banks can find out what data they have as well as its value.
Customer data platforms use advanced technology to collect and track data from all available sources, devices, channels, and sessions—both online and offline—to ensure that every stage in the customer’s journey is tracked. Through data integration, banks can invest more resources in achieving transparency and creating two-way interactions through social media in order to meet customer expectations.
Points to Consider
Banks with proper data integration techniques gain a better understanding of customer behavior and develop better relationships with customers. Following are some of the key points to consider for financial institutions, when it comes to data integration.
- Data integration associates a single banking customer with all their accounts and financial products.
- Accurate and timely data are necessary; companies must protect such data and keep it private through customer data integration.
- Data integration opens new avenues for research and analysis.
- Data integration relies on various connectors for extracting information from every possible source of data.
- Banks use data integration for better insights into customer behavior and subsequently, to offer more attractive services.
- Data integration helps banks improve processes, customer experience, and regulatory compliance, as well as reduce risks.
- Banks use data integration to fine-tune their customer segmentation.
- Banks regain the customer connection through data integration.
The proper use of data integration ensures on-demand and real-time availability of data, thus giving financial institutions unlimited access to strategic information. High-quality data integration softwares also enable customers to rest easy, knowing that their data is secure.
Customer data is a fundamental point in decision-making. Thus, it plays an important role in improving the marketing capabilities of banks. By effectively capturing, storing, and integrating this information, banks will be able to perceive who their customers are and how they are reacting to their marketing efforts.