The world’s data doubles every two years, according to Temenos CEO David Arnott. The question is: how can financial institutions utilise this vast ocean of information?
Considering the vast amount of data available, one would think that banks and other financial institutions would be using it to their advantage. However, this is not the case. While companies such as Google make a vast amount of their revenue through data, according to Temenos at their Community Forum (TCF), banks find close to 0% of income through data.
It seems as if everyone is looking towards data apart from banks. A startling fact from Arnott stated that 99% of consumers’ data is easily available through hackers. At the same time, FIs refuse to look at what they already have. However, Arnott said that "there’s now a desire to make a difference".
He added: "We need a clear view of what we do with data."
Mark Winterburn, group product director, agreed. He argued: "Data in the past was a problem. Now, it is an opportunity. The key is knowing the right action for the right time."
One key advantage that data can bring is proper use of analytics or as Winterburn put it: "When data is everywhere, we can enable analytics everywhere."
Dharmesh Mistry, product director – UXP at Temenos, said: "We have integrated data into our PFM (personal finance management) engine. Through this, Temenos UXP is being used to drive customer experience. You can capture events to drive engagement, but the way to interact has to be in real time."
With the usage of data, heavily regarded at the conference, a more personalised financial experience can be created. For example, data can be used to offer specialised loyalty rewards to faithful customers. However, this is up to banks and other financial institutions to implement. As Arnott told RBI: "It is not [Temenos’] place to segment customers."