Mitch Siegel, KPMG’s Financial Services Transformation Leader, refers to the scenario of multiple answers to a single question as evidence of too many organizations having ‘’no single source of truth.’’
Momentum is beginning to build in the industry to knock down silos and tap into the power of using data and analytics for a variety of business-building purposes. Whether it is an insurer, an asset management firm, a retail bank, or a capital markets business, financial services firms need quick access to quality data in order to build the top line. With each passing day, financial services organizations increasingly recognize how critical it is possess the ability to immediately analyze data of all varieties. The challenge, in many cases, is taking the program from concept to reality.
Our experience suggests that there are a number of actions financial-services institutions need to take to lay the groundwork to rely on the power of data and analytics to help attract and retail customers, improve productivity, and truly become of data-driven business:
All but 1 percent of organizations in our survey say that D&A is at least somewhat important to their business strategies. Almost seven in ten (69 percent) considered it either crucially or very important. And 56 percent of respondents around the world said they changed their business strategy to meet the challenges of D&A, most often to increase their capacity to analyze big data.
Yet more still remains to be done. Nearly all respondents (96 percent) admitted that untapped benefits remain on the table. More than half (56 percent) of those respondents told us that those benefits could be significant.
We would agree. Our experience in the field, combined with the data in this report, suggests that most organizations are currently focused on just a fraction of the benefits that D&A could unlock.
Today, the issue is no longer about owning the most data but rather about how to gain the most insight from it. In short, how to turn data into insights, and insights into real business advantage.
Data is everywhere, telling us everything. But do companies really know where to look? The reality is that turning mountains of data into valuable, practical and actionable business analytics is not nearly as straightforward as people believe.
To gain a more concrete understanding of the opportunities and challenges that data and analytics (D&A) presents, we commissioned FT Remark to survey 144 CFOs and CIOs from major corporations around the world (those with more than US$1 billion in annual turnover). All interviews were conducted in August 2013, with the responses aggregated and analyzed for use in this report.