Banks aren't doing enough to mine customer data in search of new sources of profit.

Michael Steinhart, Executive Editor, AllAnalytics.com

January 30, 2014

1 Min Read

As they recover from years of crisis mode, banks are discovering that they're behind in customer-focused, profit-optimized services. The February issue of our sister publication Bank Systems Technology shares some of the challenges and opportunities banks face in normalizing their data and phasing in advanced analytics.

Associate editor Jon Camhi cites an SAP survey that illustrates how banks lag behind other industries, especially retail, in customer analytics. The survey reveals that:

  • Only 46% of banks can analyze external data about customers.

  • Only 32% can analyze social media activity.

  • Data volume and analytics complexity are the most common challenges cited by respondents.

  • Cloud and predictive analytics technologies will be "extremely valuable" to around 60% of respondents' strategies in the next 24 months.

Some of the experts Camhi spoke with said unstructured data is overwhelming for legacy systems in banks, and even internal data management protocols are often in conflict. The first step for banks today is to get their database structures normalized and standardized, before they introduce new data sources into the mix.

Read the rest of this story on All Analytics.

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2014

About the Author(s)

Michael Steinhart

Executive Editor, AllAnalytics.com

Michael Steinhart has been covering IT and business computing for 15 years, tracking the rising popularity of virtualization, unified fabric, high-performance computing, and cloud infrastructures. He is editor of The Enterprise Cloud Site, which won the Least Imaginative Site Name award in 2012, and he managed TheITPro.com, a community of IT professionals taking their first steps into cloud computing. From 2006 to 2012, Steinhart worked as an executive editor at Ziff Davis Enterprise, writing and managing research reports, whitepapers, case studies, magazine features, e-newsletters, blog posts, online videos, and podcasts. He also moderated and presented in dozens of webinars and virtual tradeshows. He got his start in IT journalism at CMP Media back in 1998, then moved to PC Magazine, managing the popular Solutions section and then covering business technology and consumer software. He holds a Bachelor of Arts degree in communications/journalism from Ramapo College of New Jersey.

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