Unlocking the difference: How Data can allow banks to generate greater value

By Andre Casterman, Market Manager at Intix

In 2006, mathematician Clive Humby declared that “data is the new oil”. At the time, this statement was perceived by many to be a little over the top. However, some 15 years later, the quote already feels like an understatement, especially for sectors like financial services. More than ever, businesses in this field can generate incredible value from data, but only with the right management approach.

While some banks and financial institutions have promptly acknowledged and adapted to this opportunity, others have languished behind, persisting with outdated data management practices. This is unfortunate, especially as much like oil, data in its raw form is mainly useless. However, with suitable refinement, companies can leverage amazing things from this information and improve performance across an array of areas.

Making Data count

Whether it’s improving cross-border transactions, making it easier to spot fraudsters, or reducing instances of money laundering, with the right approach to data management, banks can improve how they serve customers and generate new efficiencies across their operations. Unfortunately, rather than being excited about this prospect, some banks find themselves worried about what this transformation will look like.

In the context of financial services, this concern is hardly surprising. It’s safe to say that banks have taken their time to understand the power of data. Until recently, solutions capable of effectively leveraging financial data seemed to only exist within the domains of fintech and neobanks. Rather than following the trend, legacy financial institutions tended to stick with what they already knew and showed little interest in exploring this new terrain.

Responding to the Shift

Overwhelming positive customer response to data-orientated financial solutions and continued growth of the fintech and neobanking sectors have shown many banks that this was a misstep. As we approach the end of 2023, banks can no longer afford to deprioritise effective data management systems. They must begin to respond if they want to preserve their position at the top of the financial ecosystem.

Compounding this need is the ever-evolving demands placed on these businesses by regulators. Recently, data management rules have become much more stringent, with banks increasingly asked to disclose new forms of financial information outside of just transaction data. The way banks need to report on transactions and other forms of financial data has become a lot more complex.

Getting data management under control

This shift has only furthered the need for banks to get their data management house in order. Thankfully, by onboarding solutions that can effectively trace, trail, and know transactions, banks can turn reams of data into actionable insights for operational excellence, compliance, and audits. At the same time, these services make it easier for banks to build more personalised solutions that generate additional value for customers.

As such, banks need solutions that can break down organisational and technical silos, which typically exist within financial institutions, to provide a complete picture across a myriad of data. In this pursuit, real-time access to messaging data can enable high-performance search, access, reporting, and dashboarding. This approach makes search and visibility far easier, enabling companies to find the needle in transaction haystacks.

Making the switch

At the same time, banks need data management solutions to track transactions at any point in the processing flow, allowing instant status updates. This is important as reconciling and delivering notifications on any part of the lifecycle flow helps to create maximum visibility and control over end-to-end operations. In doing so, these systems help identify and prevent operational bottlenecks more time efficiently.

Similarly, solutions of this nature can help banks identify fraud incidents early. They will often raise alerts around suspicious incidents immediately so preventive measures can be taken to mitigate financial and reputational loss. When assessing systems of this nature, look for solutions configured to rules of your choosing and then automated, as this will limit the need for time-intensive human oversight.

INTIX: the perfect partner

In the past, achieving this level of data management performance would have been difficult, but providers, such as Intix, can now handle the task. The company’s solutions can be relied on to meet all objectives mentioned in this article. As such, Intix is capable of fixing friction in the transaction flow and delivering real-time, efficient, and contextual data insights to help banks generate more value in their operations.

By partnering with businesses like Intix, banks worldwide can finally begin to benefit from this new form of fuel responsible for driving so much of our modern world: data. In doing so, banks can move on from worrying about the demands that data management will bring to their operations and instead look forward to the new value it will inevitably unlock, which will benefit themselves and their customers.