With multiple products and services to offer, the banking sector is flooded with enormous data related to customer information, behaviors, and transactions. It’s predicted that 2.5 quintillion bytes of data is generated every day. The financial industry today still faces challenges like dealing with such huge data, compliance adherence, fraudulent management, and churn, and customer engagement.
Most banks or financial institutions have realized the significance of Master Data Management (MDM) in resolving complex challenges faced by them. MDM is the integration of business data and information technology. It synchronizes single master records and applications across the enterprise maintaining uniformity and accuracy.
Customer data Intelligence
Master Data Management solution creates a single master repository of customer data and thereby harmonizes it across various source systems. Through this repository, banks can extract significant information based on customer’s buying history. This can help financial institutions to lead enriched customer engagement. MDM maintains a single version of truth by removing redundancy to achieve quality and accuracy.
Increase customer loyalty
MDM comes to rescue banks that suffer customer churn. The problem is partially solved if the financial institutions can predict customer defection. By harnessing MDM, banks can foresee customer attrition, draw recommendations, and act towards increased customer loyalty.
Improved sales and revenue is the ultimate objective of any business and the banking industry achieves it by leveraging MDM. Banks can utilize the master data available in the repository to identify the personalized needs of customers. Business profitability can be increased by 10% with MDM. Also the marketing/ sales teams can enhance customization and cater to customers with valuable recommendations, thereby leading to a profitable business.
Mitigate frauds and risk
Banks can checkmate frauds and hackers by embracing MDM solutions. By analyzing customer behavior and underlying patterns MDM helps banks identify anomalies aiding them to detect fraud at a nascent stage. Data auditability and traceability achieved through MDM benefits banks with better visibility and understanding of customer behavior, in turn reducing risks and scams.
Improved Compliance Adherence
MDM by handling data quality, uniformity, and accuracy, ensures better compliance adherence and mitigates associated risks. An efficient MDM solution enables banks with excellent features that resolve data quality and management issues. Legal entity integration is ensured successfully with accurate data, minimizing regulatory risks.
To wrap this up, banks can gain an advantage in the saturated market by executing an effective MDM strategy. The holistic visibility of customer behavior enables banks to lead healthier and long-term relationships with customers resulting in profitable business.
Spin Data and Strategy helps banks and financial institutions to implement a successful MDM solution to key banking industry challenges. Leverage MDM and its capabilities in distinguishing critical data and enhanced data availability to increase the scope of business growth.