FS C-suite are “flying blind”: Three steps to make better

FS C-suite are “flying blind”:

Three steps to make better decisions with data

The financial services (FS) sector has experienced its fair share of disruption in the past two years,, with cyber attacks, the acceleration of digital banking and the allure of open banking startups being amongst the many trends to play out against the backdrop of a pandemic. The rapidly changing landscape means that financial leaders are facing more pressure and higher stakes than ever before, leaving no room for error when it comes to decision-making.

Earlier this year, Treasure Data explored these challenges by surveying the views of the C-Suite in the FS sector, to understand how leaders are feeling about the art of decision-making in the current landscape. The results were stark. More than half (54%) of FS leaders now feel less confident making business-critical decisions compared to before the pandemic, and six in 10 (62%) revealed that they were afraid of making the wrong decisions. In addition, 58% admitted to feeling more pressure on the decisions being made. It is clear that there is a clear crisis of confidence in decision-making, but what is more worrying is that the sector appears to be ‘flying blind’ without the resources and insights it needs to properly understand customers and clients.

The digital revolution, accelerated by the pandemic, has made plain just how crucial data is for understanding customers and pivoting strategy at short notice. 72% of FS leaders say they base more of their decisions on data now than a couple of years ago, and 68% say that the pandemic has highlighted the importance of using data when it comes to decision-making.

Yet concerningly, FS leaders lack the understanding to fully capitalise on the data available to them. Over half (52%) said that they don’t have the right tools in place to interpret and use data to make informed decisions, and one in two (49%) lack the confidence to interpret and use data to make informed decisions. With high street banks such as HSBC and Lloyds Banking Group axing branches in favour of online, and the cost of living continuing to spiral for businesses and consumers alike; the C-suite is truly leading during an era of unpredictability. Successfully formulating and implementing actionable and precise data-driven strategies has never been more important, and all FS leaders must consider the following three steps to be data-ready.

1. Phase out data silos

77% of FS leaders recognise that effective, high quality data allows them and their businesses to open the door to a competitive advantage, yet many continue to rely on siloed data that constrains their ability to make the right decisions. As organisations grow and diversify or launch partnerships, , they risk letting critical intelligence on their customers and operations falling through the cracks.

Accessing the highest quality cloudbased data, and having the tools and skills to use it, is increasingly important if FS leaders are to overcome the crisis of decision-making facing them.

Only through truly connected insights , can financial services businesses develop the holistic view of their customers and clients that they need to provide the best quality services .

2. Upskill your team into the digital age

In order for FS leaders and organisations to make effective use of the data available, they first and foremost must invest in boosting their skills - and those of their team. Our findings highlighted that data literacy is a concern for the FS C-suite, with 60% saying they felt that a better understanding of the available data would improve their job performance.

Investing in upskilling your team will harness their ability to turn unconnected data points into a holistic picture of actionable insights. Once leaders and their teams learn how to identify which data is genuinely useful and how to connect insights across channels and platforms, a picture will start to form, and the invaluable patterns of customer behaviour and consumer preferences will be unlocked.

Equally, high quality training will grant you and your team the knowledge you need to conduct data management responsibly and ensure the right decisions are made when it comes to delivering tailored, personalised experiences without compromising privacy.

3. Reorganise and gain deeper insight

Whilst it is always important to take a holistic view, large data sets diminish in value without the intelligence and expertise needed to turn them into insights. The real problem facing FS leaders is a lack of intelligence around data, not that there is too much of it. In the age of precision marketing, data must be mined in order to inform the most effective communications with customers and clients.

The C-suite must recognise that they have access to a goldmine of intelligence, but decrypting it requires the proper expertise and organisational setup. . Following these steps to properly equip teams will allow FS leaders to become more nimble and confident in navigating such an uncertain landscape. - The result? Decision-making e driven by smarter insights, and a clear cut competitive advantage.

Andrew Stephenson, Director of Marketing EMEA Treasure Data