Banking Relationships - Is Information the Key?

bottom-link">difficulty arises due to the fact that data within most
financial institutions is stored and processed on a
As more and more financial institutions embrace theproduct-by-product basis.
concept of CRM, are they really improving theirIn the 1996 Annual Report of Capital One, it was
relationships with their customers, and is thatstated that - "Many of our business opportunities are
improvement equating to dollars on the bottom line?short-lived. We have to move fast to exploit them and
At the same time, while preparing for T+0, manymove on when they fade". This means that
financial institutions are attempting to provide bettercompanies that managed to abstract their data
access to their stakeholders through Portals. Howrequirements from the applications that deliver
many of these eBusiness initiatives are really using thecustomer centric services have a huge advantage.
all of the data stored across the entire enterprise in aThey can deliver new products rapidly to suit market
truly integrated way that yields valuable data? Areconditions, and tie those products to the customers
banks getting value for money on their applications?that would benefit greatest from them.
According to Gartner Group - the average EnterpriseAs financial institutions strive to create more value
has 14 different databases, and spends 60-70% of itsfrom their activities, they are collecting increasing
Application development creating ways to access thatamounts of electronic data on a number of different
data. Financial Services companies have more, anddata systems - compounding the difficulty of deriving a
their demands are greater. They also require the abilitysingle, comprehensive view of their business. In order
to combine real-time data with information they shouldto make better business decisions, many banks are
already know, to make real-time decisions.installing business intelligence systems. Their key to
Particularly in financial markets, customers aresuccess is creating a unified view either through a data
demanding direct access to such systems, forwarehouse, or through manual, hard-coded integration.
example to check portfolio performance or makeMost currently available solutions are expensive to
transactions.undertake, time consuming and leave the company
Customers of financial institutions are also increasinglywith a single, inflexible answer, and still much valuable
demanding access to information relating to alldata is still left outside of this process.
products and services held with the financial institutionBanks have long differentiated themselves on the
via online channels. This information needs to bevalue add services they are able to provide their
tailored to their needs. In the case of Institutionalcustomers. This is derived form the information built up
customers or high net worth individuals, they want thefrom many years experience. Is it not time that one of
choice of portal access or a financial advisor, but theythe most valuable assets currently locked within most
expect both channels to share the same data. Theenterprises was put to use?