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Cloud Data Analytics - Oct 04 2021

How Can Banks Leverage a Data Cloud to Improve Client Services?

There is a direct correlation between client retention and the quality of service rendered by the organization. Businesses that prioritize a secure and efficient client engagement process tend to deliver a higher quality user experience and get a higher customer satisfaction rating. With the increased adoption of data analytics, and consumption-based service models for storage and security, financial institutions are increasing their reliance on cloud-based data management solutions. Let’s explore how data cloud solutions can help banking and financial services enhance client services. 

Challenges with traditional data management architectures

The banking sector has traditionally chosen on-premise data management systems because this gave the bank complete control and ownership of their IT environments. However, the downside proved to be insurmountable. 

On-premise IT systems are cumbersome when it comes to set-up, maintenance, and management. They also present high operational costs, security threats, limited flexibility, and scalability issues. 

Lack of Centralized Data

Data transparency and data access are both key organizational requirements. Without centralized data transparency, access is limited and the growing need for more on-site storage results in increased costs and lag times. Centralized data is more conducive to improved data quality and frequent updates to make it more relevant.           

Build-up of Data Silos

When data exists in silos, it can lead to a build-up of data that is vulnerable to corruption and duplication. This leads to a lag in business by preventing data access in a timely manner, a crucial requirement for making informed business decisions. Unless there is an automated infrastructure to consolidate, rationalize and validate this data, the inefficiencies to separate and cleanse data will cause the organization to suffer from hampered data access and data inaccuracy. 

Slow Transactional Speeds 

Customers want quick and seamless access to banking services with fast transactional speeds. With traditional infrastructure, you have to plan the increased capacity requirements in advance to handle lead times for infrastructure build out. Without the proper planning, on-premise IT infrastructure can struggle with overloading, which leads to downtime and or slow processing speeds, especially during peak hours. 

Slow Deployment of Services

If banks want to stay competitive, they need to deploy services quickly and securely while constantly reinventing themselves to keep up with changing customers’ demands and expectations. If the bank’s IT infrastructure cannot keep up with the pace of deployment, new or advanced service introduction does not provide the expected ROI. If the infrastructure design requires purchase and installation of hardware, this will result in delays with deployment.

Regulatory Compliance

Banks and financial services need to be able to quickly update their compliance with all regulatory mandates and policies. With on-premise data management systems, there is often a lag in updating due to slow speeds, which can lead to compliance and risk issues for the institution. 

How the data cloud can help 

The need for greater visibility and transparency in accessing, managing, and processing data, both at the organizational and consumer level, is driving banking and financial service sectors to move to data cloud architectures. This architecture allows the institutions to rapidly move data from legacy systems, online repositories and unstructured data sources. Once the data is consolidated in analytics-ready formats in the data cloud, it is easier to run transformation logic to validate and curate this data to make it market relevant. Data lakes and data clouds with advanced consumption models provide a more dynamic data management infrastructure along with better cost allocation support.

Benefits of Cloud Data

  • Minimizes business downtime and disruptions.
  • Enables faster and seamless scaling up/down of IT deployment to address business or market requirements.
  • Enhances data security, even in the event of a natural disaster or any kind of emergency, such as data or power outage. Data can be quickly recovered and easily accessed. 
  • Substantial CapEx reduction since the need to maintain and manage IT infrastructure is eliminated. 
  • Reduction in the need for duplicating data. 
  • Elimination of unnecessary data silos. 
  • Substantial cost savings and a positive impact on revenue. A major portion of the savings is directly attributed to reduction in the need for growth in storage.

Each of the above-mentioned advantages work by collectively improving banking operations directly. With the data in a single repository, the banking institution can focus on monetizing relevant data.      

Cloud data deployment outcomes for banking services

The following are some of the ways in which cloud data can improve client services and experience. 

Enhance Customer Experience

The use of cloud data enables banks to enhance their customer’s experience in a number of ways including the following:

  • A more secure environment when using third-party applications and services to improve customer experience.
  • The ability to offer customers solutions straight to messaging apps, or offering instant solutions directly to the customer’s phone, thereby driving personalized experiences. 
  • Enabling faster transaction times even during peak hours. 
  • Faster and easy access to services such as real-time checks.
  • Optimized investment and savings recommendations. 
  • Personalized solutions and offers that are based on robust analytics.  

Improved Customer Insight

Using cloud data, banks can now gain in-depth customer insights via the use of updated and relevant customer data and predictive analytics. This allows banks to provide more personalized experiences across multiple touch points. 

Modernize Payments and Core Banking Services

Cloud data analytics make it easier for banks to introduce new services and products to customers, while also identifying new revenue streams. Because of this banks and financial services, as well as their customers, gain complete agility.

Enhanced Risk Management

Using cloud data’s robust risk-management solutions, banking and financial services are able to secure all their sensitive data while staying updated with the necessary regulatory mandates. Since banking services are accessed via multiple screens, the risk of exposure is increased making risk mitigation an important aspect of data management. With cloud data, risk analysts can mitigate any future risk or security concerns by simulating potential threat environments or situations. 

Cloud Data Adoption with NextPhase.ai

Regardless of its size and scale, cloud data adoption is only a matter of time for each business and organization in the market today. At NextPhase.ai, we specialize in helping businesses with all their cloud requirements. Our team of highly tenured experts have led successful cloud migrations for hundreds of businesses of all sizes, across various industries. 

If you are considering cloud migration for your business, our team of experts will work with you to ensure that your cloud migration is planned and implemented to deliver optimized efficiency and minimum disruption. 

Have questions? We help companies like yours, every day.

Email us at hello@nextphase.ai

Read More

The Banking Industry and Its Move to the Data Cloud

About NextPhase.ai

NextPhase.ai is a data cloud services provider specializing in Snowflake, cloud data management and analytics technologies. We accelerate enterprise digital transformation initiatives by leveraging our innovative cloud data management technology, “NextPhase.ai DATAFLO” to optimize and rationalize disparate enterprise data into relevant insights. “DATAFLO” is designed to automate the lifecycle of data management transformation using AI and ML along with expeditious on-ramps to the Snowflake data cloud infrastructure. NextPhase.ai provides a range of technology consulting services for the Financial Services, Biotech and Technology industry sectors combining our platform-based services, seasoned talent, and industry proven methodology so our customers can harness more from their data. We are a Silicon Valley based company with global presence having delivered high value service engagements for numerous Global 2000 enterprises.

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