Data-Driven Banking for Swiss Banks
Data-Driven Banking for Swiss Banks
Action required for Swiss Institutes: If they want to position themselves for the future, banks in Switzerland must focus more on the opportunities afforded by data-driven business models. This is the central thesis of an exciting article written by two experts from Contovista for Netzwoche.
Senior Data Scientist Martin Biehler and Data Scientist Ilario Giordanelli argue that customer expectations are evolving, while new, agile digital neo-banks are entering the market. As a result, established institutions also need to leverage data-driven innovation to remain competitive.
While other industries such as retail have long adopted data-driven approaches, the banking industry is still showing relative restraint, e.g., because of concerns about governance and data protection. In light of mounting competitive pressure, however, institutions cannot afford to wait any longer if they want to be successful in the long run. After all, data-driven banking offers them a number of benefits that will enable them to effectively compete with new competitors.
The way for banks to get started is to capture, structure, and centrally process data about their customers. To achieve this, several challenges need to be overcome, such as breaking down organisational silos that hinder consistent data usage. What’s more, the technical effort should not be underestimated, especially when it comes to tracking customer interests. Since this approach only works with the consent of customers, the offerings must also be designed to be highly trustworthy and, above all, provide tangible added value for the users.
If these requirements are met, data-driven banking can fully realise its potential, boost customer loyalty, and open up new business areas – whether it’s a national institution that wants to offer service at a global level or a regional bank that can now reach a much broader customer base thanks to online banking.
