UK financial services firms must fully integrate data teams in business to reap benefits of data
London, UK, 27 March 2023: Financial services leaders see a clear role for better data, with 94% agreeing effective use of data is key to running a successful business, but there are still significant gaps that prevent these organisations from fully utilising the data they hold.
New research from data and analytics strategy consultancy, Cynozure, reveals over four in ten of those working in financial services firms (43%) say that even though they have a data platform, the business doesn’t engage with it, while 35% say that the data world is too complex to understand, and 31% admit there is a wider lack of data literacy in the organisation.
Eight in ten (82%) of those surveyed recognise that there was more they could do to improve the use of data but say they don’t know where to start or who to speak to about it in the organisation. For businesses to make full and effective use of data, it’s imperative that data is understood, engaged with, and accessible to employees at all levels across the business.
One of the best ways to improve data literacy is for data teams to be integrated across an organisation rather than sitting separately to the rest of the business. Cynozure’s research showed that this is not currently the case for many UK financial institutions, with 79% saying the data team is separate to the rest of the business, and seven in ten (69%) saying there is little interaction between the data team and the rest of the business.
As the cost of living crisis continues to put pressure on consumer finances, data is an increasingly crucial tool for financial institutions to support customers – nearly all respondents (94%) agree that data insights will be an important way to support customers as the cost of living crisis worsens. However utilising data in this way will only be possible if employees across the business understand the value and role of data in aiding decision making, shaping product development, and informing the level of support provided to customers.
Jason Foster, CEO and Founder of Cynozure comments: “There is a difference between simply managing data and deriving true business value from it. While it’s encouraging to see that the majority of UK financial services firms recognise the value that data can bring, the next step is to improve workplace culture around data by empowering employees at all levels of the organisation with the skills and knowledge to benefit from the insights it can bring. All too often, data is considered as siloed, separate entities to the wider business, and this is a misconception that must be challenged if organisations are to fully benefit from the data they hold.”
Looking to improve your organization’s data strategy? Discover why data literacy is a critical piece of the puzzle in Tim Connold’s blog: Data strategy without data literacy? Like boarding the Titanic!
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