Data, data and more data. Everyone’s talking about it. But collecting data is one thing; how we utilize it effectively is the real challenge we face today.
The speed at which technology has developed over the last twenty years or so has fundamentally changed, on an enormous scale. Our ability to store, mine and subsequently analyze data has allowed businesses to identify trends, spot opportunities and ultimately drive value for both themselves and their customers.
- How to use data to make smart decisions
- See how Currencycloud can help your business manage its data better
As a result, consumers see this in action on a daily basis: from supermarket loyalty cards encouraging relevant shopping purchase promotions, to film, and TV recommendations on Amazon, Netflix and other streaming services based on your shopping and viewing habits.
Businesses too have embraced the benefits of data analysis – logistics companies use data to track deliveries and provide relevant information to their customers, or to manage ‘just in time’ inventory. Manufacturing companies use data to make production and material purchase decisions in ways that increase their efficiencies and reduce their costs. Financial services companies use data to assess their customers’ risk profile and offer them products that match their needs.
Analyze and influence
Broadly, however, the banking industry has been slower to the game. Until now. With the benefit of Open Banking and a plethora of fintechs utilizing this new regulation, applying data in new and different ways is starting to make its mark in the world of banking. The likes of Monzo and Starling provide customers with analysis of spending habits that allow customers to easily see how, where and what they’re spending their money on (among many other benefits). The opportunity to then influence and change habits, or potentially save money is much easier. And that’s where the real value lies for the customer, and in turn, activates loyalty towards the bank.
The benefits of data analysis and business intelligence are obvious: a much more improved customer experience that also drives value for the business.
But data is ultimately just numbers on a page if you don’t know what you’re looking at or how to interpret it. While all businesses can generate data points, data analysis is only useful when it serves to bring about change or support a business decision. Business leaders are looking to uncover insights that are meaningful to them.
In the past businesses would need a lot of time and money, and probably someone with a PhD in statistical analysis to turn raw data into actionable business intelligence. This is no longer the case.
Gaining informative insights
As technology leaps forward, clever systems and reporting tools are helping businesses not only understand their product and service uptake, but importantly, how their customers are interacting with these products and services. Data is being collated but crucially, translated into informative insights and analysis that is allowing businesses to make smart business decisions that impact the bottom line while driving an improved experience for their customers, much like how Currencycloud’s new Insights and reporting suite will help power up our clients with the data they need to succeed.
As consumers and businesses become more familiar and confident with what technology can offer, we’re also able to look to the future and use predictive analysis to spot trends, make recommendations and simply execute suggestions.
There’s huge value in what is available today. Especially with handy tools that help you decipher data fast. As data analysis becomes an increasingly automated process because of machine learning and AI, humans still play a vital role in using this data to make actionable insights. The more we can equip our clients with meaningful and insightful data, the more we can help them succeed.
To find out more about Currencycloud Insights, download our factsheet or contact your Account Manager directly.