The real question which needs to be asked is how banks are using their data they currently are sitting on. Earlier banks used their in-house teams to mine data for business reporting, then came building a decision support systems to support business decision making and in next phase, came in concepts and tools like CRM to be able to include customer in the decision making process to be able to drive business for the person, who provides business and is core to anything and everything rather than doing it creating money for shareholders (maximizing shareholder value).
Now data was always pouring in and will continue pouring in as more avenues like social media, behavioral analysis, consumer and human psychology get integrated in business strategy. The question is how geared bans were in the past, are geared up for present and want to gear up for future.
The ROI on earlier phases as explained above has still not be demonstrated and proven conclusively and it has only become a support tool rather than a strategic core around which business strategy can evolve. A lot of decisions are still made based on gut feeling or instinct and many organization still thrive on charisma than intelligence coming from data.
In my mind, any new concepts or tools are welcome as long as it can first demonstrate how it adds value and then it can be absorbed and made the oxygen on which the blood thrives and gives life to mind and body.
The approach could be to work with data driven business first (like retailers) and then bring it to more sophisticated decision making for evolved needs (financial) and then banks can invest dollars into it rather than adding and investing in one more business intelligence tool.
The author can be contacted over email, rajnishkhare@gmail.com, for feedback and comments
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