A new Impact Report from Aite Group, LLC examines opportunities to gather and analyze the relationship and transaction data on both aggregated groups of customers and individual bank customers to enhance the comprehensive 360Â° view of the customer and to improve key business processes, such as new account opening and account management.
The report, titled "Transforming Data into Insight: Enhancing Customer Relationships and Bank Profits," confirms that the payments landscape is changing, and that financial institutions and service providers are looking beyond efficient operations to understand and mine enterprise transaction data and provide key insights into customer behavior and profitability. It reveals that despite the organizational and systems silos common at banks, banks leveraging new technology to access and analyze enterprise-wide data can achieve stronger customer relationships, greater revenue generation and cost savings.
"There are numerous opportunities for banks to leverage all of the customer data to which they have access to improve their profitability," says Nancy Atkinson, senior analyst at Aite Group and author of this report. "However, there is a disconnect between the goals of banks' payment organizations and the amount of time that is spent on activities in support of those goals. Improving data access and analysis will alleviate time spent on less important activities, allowing payment organizations to allot more time to their more important goals. In spite of business justification issues and systems migration challenges, technology is available to help embrace the opportunities that abound."