The data deluge problem isn’t just about the amount of internal, operational data being stored, but also the level of granularity available. The finance and HR teams of many institutions still operate on outdated systems that are only able to store aggregate data with complex details summarized. While these systems may be sufficient for the purpose of financial reporting, they’re unable to keep up with the level of complexity needed to drive business decisions.
Making sense of information requires a unified system that can not only disaggregate data to the line item level but can also pull in different data sources. This way, financial services firms can get a comprehensive view into their organizations by comparing and analyzing performance across products, customer segments, regions, and other dimensions. Combining all this data at the lowest level of granularity provides better insight into cash inflows and outflows—as well as your key ratios—to better manage risk and drive profitability.
Financial institutions also need a comprehensive view of all this granular data in a real-time dashboard. For instance, a branch or lending manager could use a credit risk dashboard that details loan charge-offs and delinquencies to determine what changes need to be made to meet revenue goals or to identify a disruptive pattern. Or, a financial institution could use benchmarking capabilities to understand how they compare to companies of a similar size or industry, helping them understand their strengths and weaknesses in relation to other organizations.
Data can be a blessing or a burden. Don’t hoard your data. With the right strategy and the technology to support it, your organization can hone in on the right data to make decisions that will move the needle forward.