[June 07, 2016] |
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Financial Services Executives Agree: Self-Service Access to Data Increases Revenue, Customer Satisfaction
Providing customer-facing financial services employees greater access to
data leads to more revenue, reduced customer churn, and increased
customer satisfaction, according to the findings of a global study by
WSJ. Insights, sponsored by Qlik®
(NASDAQ: QLIK), a leader in visual analytics. According to the study,
more than four in five (83 percent) financial services executives agree
that fully leveraging financial and customer data into analytical
insights would represent an increase of at least five percent of their
annual revenue. But less than one out of five companies allows access to
information and data consistently across all departments or teams,
including customer-facing employees on the corporate frontlines who
could benefit from having the information to better serve customers.
The study, which surveyed 300 global financial services leaders,
confirms that while financial services companies have access to powerful
insights from their data, often this data does not make its way to
employees at the edge of the organization - those who are
customer-facing and need it the most. While a majority of respondents
rate their analytics function as 'highly effective' in terms of two
primary objectives: capturing customer information (86 percent) and
securing/safeguarding data (80 percent), only about half the respondents
say their organization is effective at gaining a clear understanding
about who needs what information (51 percent). A majority agree that
customer-facing functions will be a priority for expansion of volume and
variety of available data (55 percent), and that they will carry out a
major transformation of the entire analytics function (52 percent).
"There's gold in these servers, and the trick is how we extract that
gold from the ore," said J.R. Reed, a senior manager for financial
analytics at Deloitte (News - Alert) Consulting LLP. "Data is an asset, a very
important asset. Companies have been gathering this information about
their markets and their customers. They've been accumulating all of this
information that they can use to positively impact their customer and
positively impact their business."
Additional key findings include:
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Organizations are challenged by communications issues and data
complexity: One of the top internal challenges to getting
information to the right people is the fact that information is spread
across a myriad of different, often mutually incompatible systems (42
percent). Other problems include critical information being lost due
to poor communication (43 percent) and a lack of recognition of data
as a shared corporate asset (41 percent). In terms of external
challenges, a majority of respondents agree that information is
frequently too complex to be processed, analyzed, and disseminated in
a timely fashion.
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Banks lag other financial industries in understanding who needs
what information: Banking leaders are more likely than those from
other industries to say that their analytics functions are highly
effective (88 percent compared to 76 percent for other industries).
But only a minority report high levels of effectiveness indicating
that improvements are needed - especially in an environment where
smaller, more disruptive companies are finding new ways to capitalize
on their customers. According to the survey, the sector's analytics
functions lag other industries regarding their understanding of who
needs what information (45 percent compared to 55 percent). This
disconnect is troublesome considering that banking leaders are more
inclined than those from other sectors to believe that their
customer-facing employees are highly confident in making the most of
such information.
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Capital markets organizations are highly effective in getting
information to those who need it most, but lack confidence: Capital
markets respondents are much more likely than their counterparts to
say that their data analytics functions are highly effective at
getting vital information to thos who need it the most (52 percent
rating the function at least 8 out of 10 for effectiveness, compared
to 32 percent in other industries). Yet only 42 percent of capital
markets executives believe that line of business leaders, department
heads, and managers are highly confident in using such information to
support business decisions or improving customer outcomes. In
addition, just 36 percent believe that customer-facing employees are
highly confident in fully utilizing information. Most (58 percent) say
they plan to expand the volume and variety of information available
across the organization with a particular emphasis on customer-facing
functions.
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Insurance organizations are less likely to make customer
information consistently available to all departments and functions: Insurance
respondents are more likely than counterparts in banking and capital
markets to say their organization collects data from multiple sources
and have access to it from anywhere (46 percent compared to 38 percent
in other industries). Yet they are least likely to say that their data
analytics function excels at getting vital data to business units that
need it most (26 percent vs. 45 percent), and also least likely to say
the organization allows access to information sources and data
consistently across all departments, including customer-facing
employees (14 percent vs 20 percent).
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Challenges standing in the way of self-service data access vary by
company size: Small firms are most challenged by practical
difficulties such as internal communications, systems
interoperability, information complexity, and lack of standards, while
large firms are most challenged by organizational issues such as data
ownership issues, end-user training, and accountability of senior
leadership. Large firms are most likely to say that they plan to carry
out a major transformation of their analytics function (57 percent
compared to 52 percent overall) and to expand the volume and variety
of information available across the organization while prioritizing
customer-facing functions (67 percent compared to 55 percent). Small
firms are more likely to say they will invest in new data
infrastructure, including delivery platforms for users across the
organization (52 percent compared to 47 percent).
"Financial Services firms face the analytical perfect storm: the
greatest complexity and frequency of data, combined with the rapid-fire
questions that come from the business," said Duncan Ash, Senior
Director, Global Financial Services at Qlik. "The person who can act the
fastest in a volatile market stands to profit the most from their
decisions, incentivizing business and technology teams to work in
unison."
For More Information For a deeper analysis into the study,
join the roundtable webinar Extending Analytics to the Edges of
Financial Services. Representatives from Qlik, WSJ. Custom Studios,
Citi, and Deloitte will share results from the survey and discuss a
variety of topics, including challenges and opportunities when deploying
self-service analytics and common analytics use cases across banking,
insurance and capital markets. Register here:
About This Research The insights and commentary found in
this report are derived from both a survey and qualitative interviews
with financial services executives. The online survey was conducted
between March 28 and April 29, 2016 by WSJ. Insights in part of WSJ.
Custom Studios, the marketing research unit of The Wall Street Journal.
The 300 respondents were evenly distributed across North America, Europe
and Asia. They were spread evenly across the banking, capital markets
and insurance sectors, with 60 percent of the companies represented
reporting annual revenues greater than $1 billion. Thirty percent of the
respondents were C-suite-level technology executives (including CIOs and
CTOs), while 21 percent were financial officers (including CFOs) and 15
percent were operations executives (including COOs). Twenty-one percent
categorized themselves as directors, executive directors, vice
presidents or senior vice presidents.
About WSJ. Custom Studios WSJ. Custom Studios, the content
marketing division within The Wall Street Journal's advertising
department, crafts stories that engage consumers and elevate the
conversation for brands. Its global team of award-winning editors,
designers and interactive developers are all held to the high standards
for which The Wall Street Journal is known, resulting in highly original
and credible content that resonates with the client's target audience.
The Wall Street Journal is a global news organization that provides
leading news, information, commentary and analysis. Published by Dow
Jones, The Wall Street Journal engages readers across print, digital,
mobile, social, and video. Building on its heritage as the preeminent
source of global business and financial news, the Journal includes
coverage of U.S. & world news, politics, arts, culture, lifestyle,
sports, and health. It holds 36 Pulitzer Prizes for outstanding
journalism. http://www.wsj.com.
About Qlik Qlik (NASDAQ: QLIK) is a leader in visual
analytics. Its portfolio of products meets customers' growing needs from
reporting and self-service visual analysis to guided, embedded and
custom analytics. Approximately 39,000 customers rely on Qlik solutions
to gain meaning out of information from varied sources, exploring the
hidden relationships within data that lead to insights that ignite good
ideas. Headquartered in Radnor, Pennsylvania, Qlik has offices around
the world with more than 1700 partners covering more than 100 countries.
© 2016 QlikTech International AB. All rights reserved. Qlik®, Qlik
Sense®, QlikView®, QlikTech®, Qlik® Cloud, Qlik® DataMarket, Qlik®
Analytics Platform, Qlik Connectors™, and the QlikTech logos are
trademarks of QlikTech International AB which have been registered in
multiple countries. Other marks and logos mentioned herein are
trademarks or registered trademarks of their respective owners.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160607005166/en/
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