40% of banks in panic mode as unprepared for effective data usage

Four in ten banks and financial services lack necessary infrastructure for a strong data foundation and 37% of firms are still reliant on manual data processes, global data and analytics software company Quantexa revealed.

The finding comes from a survey of 750 IT and data decision makers in the financial services, insurance and public sectors. Quantexa claims this is the first ever data in context study.

Its research found that 95% of organisations suffer from a data decision gap. This is an inability to collate internal and external data to improve decision making.

As a result, 47% suffer from regulatory scrutiny and compliance issues, 44% feel they miss customer experience opportunities and retention chances, and 42% see resource drainage due to increased manual workloads.

Due to this gap in data collection, it means strategic and operational decisions are made on incomplete pictures. The report finds that 50% of strategic decisions miss crucial intelligence because of missed information.

Quantexa claims firms struggle to establish an enterprise-wide data fabric as a foundation. This is only first step. Data needs to be connected to create a relationship view, which impacts the ability to manage everything from enterprise risk through to customer experience.

Without this, organisations cannot see emerging patterns from real-life entities, it said. For example, uncovering real beneficiaries behind offshore companies, detecting fraudulent credit applications and uncovering buying patterns that turn shoppers into long-term loyal customers.

Quantexa CEO and founder Vishal Marria said, “The pandemic put data in the spotlight. Digitisation has meant organisations face an increasing tsunami of data, and many found they couldn’t take strategic advantage of the opportunity that connected data brings.

“Today’s organisations have all the data assets they need to make better decisions, but the data decision gap means they can’t extract meaning or value out of their data, as they can’t connect it to generate the single, accurate view needed.”

Quantexa is a data and analytics solution developer, which builds tools for risk management, anti-fraud, customer intelligence and more. Its CDI platform connects disparate internal and external datasets, such as integrating with the UK’s National Fraud Database with internal customer data. These connections provide a single view of data surfaced in network graphs of real-world entities.

Marria concluded, “Contextual Decision Intelligence (CDI) turns traditional data approaches on their head, connecting each datapoint to all others in the organization and external data sources. With this connected basis, decision makers can see a single view of customers, from which they can extract real-world intelligence and take action. Then, with the addition of Artificial Intelligence (AI), organisations can scale automated decisions across the business, freeing humans.”

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