Guest post from Laurence Trigwell, Worldwide Financial Services Executive, IBM Business Analytics
Follow Laurence on Twitter: @LaurenceTrigwel
I recently attended IBM’s Financial Services Summits in Toronto and New York and had the opportunity to hear from, and meet with, senior bank and insurance executives, academic thought leaders, industry analysts and the press.
Of course it’s no surprise that everyone is talking about “analytics.” In today’s economy it offers adopters the opportunity to create sustainable competitive advantage.
What was most striking from the events this year was the accelerated maturity from financial services organizations already underway with their analytics programs.
Specifically, I was pleased to hear about further adoption of analytic capabilities, the partnerships between business units and technology teams, and the increasingly sophisticated ways they are quantifying the value gained.
The same two analytics agendas came through strongly: broader, deeper, more timely and more actionable understanding of customers; and, the ability to create an agile, holistic and integrated risk framework that aligns risk, finance, management and front office and meets increased governance demands across all risk classes.
The challenges are long recognised and often talked about. What was different from my conversations was the commitment to address and the innovative approaches being taken, such as:
· Combining entity analysis, social media analysis and predictive modelling to link suspect claims with suspect individuals to break insurance fraud rings
· Linking customer analytics, customer profitability and business modelling to create profitable business strategies that anticipate customer need
· Creating a robust group-wide capital model, stressed for market shocks and reconstructing portfolios for optimal capital efficiency within and across business units
The truth is that as the business analytics category continues to evolve, the winners will find sustainable advantage by:
· Continuing to mature their use of information and individual analytic capabilities
· Use their acumen to combine analytic capabilities in innovative ways across the category
· Embed that insight to inform decisions throughout the organisation
· Identify the highest value programs through business and technology dialog and navigate the investment roadmap
· Quantify the benefits gained to support re-investment and continued innovation
· Hire innovators, embrace change and challenge conventional wisdom
Ian Ayres, the Yale professor, economist, lawyer and author of Super Crunchers who was the keynote speaker at the events, challenged the attendees to think differently, make more informed decisions and become smarter organisations. (Read an interview with Ian here.)
Seems many organizations are already fast on their way.
For more information:
· Watch the Customer Analytics in Banking Demo
· Read the whitepaper, “Facilitating ‘Sound’ Practices in Risk Management”