Data Coming of Age in Financial Services
Unlike other industries the financial services sector has always been a pioneer in adopting digitization and emerging technologies. While many other industries are vying to integrate data solutions and analytics of various shape and form, in financial services the competition is between how the insights generated from data can be used for better customer experience, operations, transformation and value drivers. The competitive landscape between large financial service firms and born digital FinTechs is heating up to share the customers wallet.
In this paradigm shift, the focus in finance is on insights from data rather than niche applications supported by data in other industries. When the insights are in play, the business analysis professionals can no longer be distant to the process of interpreting and translating the insights into business decision and change. Although the core tenets of analysis remain the same for BA professionals the toolset to achieve the newer asks are different. They need to unlearn the traditional process and learn how to leverage data and new technologies to drive better business outcomes.
The expectations from the business analysis community has evolved with the times and there is a clear need for a data-enabled decision-making framework which takes the best of both analysis and analytics into account. A three-pronged framework can be realized that does not get lost in the demanding disciplines of data but advocates the importance of business decisions that may emerge from analytical insights.
In most of the other industries the clear focus and the energy is being dedicated to “Data Analysis and Modelling”, in financial services the best strategies employed for a true transformation consider all three aspects within this framework.
Figure 1 Extended Decision Framework
In IIBA’s latest collaboration with Accenture,
we take this concept deeper and analyze how business transformations led through data are impacting different business sectors - from core banking, payments, capital markets, and fraud to insurance, regulatory reporting, and customer relations.
Learn more about how business analysis and data science converge to provide better outcomes in finance in our new whitepaper in collaboration with Accenture: Business Analysis in the Data Science Age – Pivoting to the New in Financial Services.