Against an unsettled economic and political backdrop, and concerns of another looming recession, a new study shows that third (33%) of leaders in finance sector organisations find it difficult to get the most out of the data they hold, despite it being essential to planning and risk assessment.
Global data and analytics provider Dun & Bradstreet’s Data-Driven Resilience report, which surveyed 437 leaders from organisations in the finance sector across 18 countries, revealed that there is a clear need to develop a better understanding of how to make the most of their data. Over a third (36%) struggle to find the time to regularly check the relevancy of the data to the business context, and a similar number (31%) find it challenging to democratise data – making it more widely accessible to employees – for better decision-making.
Over a quarter (26%) of leaders admit that data being in silos is making it difficult for their business to understand all the data they have.
However, when data is successfully leveraged, financial sector organisations are using insights to find new opportunities to drive business growth (33%), increase revenue (32%) and enable better business decisions (31%).
Commenting on the findings, Sara de la Torre, Head of Banking and Financial Services at Dun & Bradstreet, said: “New platform entrants in the financial services industry have embedded data and insights into their strategy and operations from the very beginning – enabling them to drive innovation in the sector. For traditional incumbents, the only choice is to embrace the opportunity from new technologies to gain better insights, improve customer experience and stay current’.
“Regulatory pressures, financial risks and challenges such as cyber security remain a priority. However, financial institutions are changing how they approach these, treating risk management responsibilities as opportunities to drive growth sustainably. Looking ahead, industry leaders must ensure they have a clear data strategy so they can leverage their data insights to make effective business decisions which will help future proof their business’ resilience.”
Leaders clearly understand the value of data for ensuring business resilience:
- Three-quarters (75%) of financial sector leaders view data as vital for various strategic purposes:
- Financial planning (79%)
- Identifying new customers (76%)
- Assessing future potential risks to the business (76%)
- Nearly four-in-five leaders (79%) acknowledge that data is essential for future-proofing their business.
- Three-quarters (74%) agree that data provides them with a competitive advantage.
- Despite concerns about data usage, optimism prevails among financial sector leaders:
- Almost all (90%) believe their organisations are resilient during turbulent times.
- A third (32%) perceive their businesses as “extremely resilient.”
Torre continues: “Data insights are crucial to creating new revenue streams for both traditional and digital players. It’s not just about targeting new customers, it’s a case of harnessing customer and market data in unique ways to enter new markets or provide value to those existing customers. With yet more talk of a recession being on the cards, finding new avenues to drive revenue and protect business’ fiscal pipeline against risks has never been more important – those that don’t understand how to get the most out of their data may not survive.”
