The Importance of Data Analytics for Financial Services

Kade Brewster • Apr 19, 2023

Data Informs Every Trend and Prediction

No two days are ever the same in financial services. In an ever-changing global economy, realities change in an instant. Look no further than the news over the past couple of weeks regarding Silicon Valley Bank and others. With the growing volume and complexity of financial data, the use of data analytics has become essential for financial institutions to remain competitive and thrive in a rapidly changing landscape.


Financial institutions need the ability to make more accurate, informed decisions to reduce risk and increase profitability. By analyzing vast amounts of data in real-time, financial institutions can identify market trends, forecast future financial performance, and assess risk. The ability to quickly and accurately analyze data is essential to the very survival of the financial industry.


Furthermore, the necessity for streamlined data solutions is highlighted by the increasing reliance on technology in the industry. The rise of digital banking, mobile payments, and online investing has led to a significant increase in the amount of data generated by financial transactions. Financial institutions must be able to collect, process, and analyze this data to remain competitive and provide their customers with the best possible service.


These new sources of data don’t just introduce opportunities to better understand your customer. They also introduce new risks that must be successfully mitigated. Look at the Silicon Valley Bank collapse, or the inflation of Gamestop stock a few years ago driven by social media. Never before have we operated in an environment where customer behavior can be so quickly and easily influenced in large volumes. Today, it is easier than ever before for customers to quickly transfer their assets to a new financial institution. These new risks highlight the need for effective analytics. Without the insight into your customer’s sentiment, your institution risks being caught totally unprepared in a tidal wave of customer movement. 


The Future of Banking and Finance

The future of banking and finance will undoubtedly be shaped by the continued evolution of data and the systems designed to optimize it. The collection, processing, and analysis of information that can be used to make informed decisions is critical to understanding the economic environment from day to day. In the financial services, data analytics can be used to identify market trends, understand customer personas, and assess risk among many other functions. 


The power of data in the financial services industry can drive a significant competitive advantage when utilized correctly, but an ever-increasing risk if not managed appropriately. With changes in consumer behavior and an expectation of seamlessly-integrated digital solutions, financial services providers are constantly working to keep up with the latest demands from customers and regulators. For institutions, they need systems and partners in place that provide solutions that start with the customer experience to drive and increase market and wallet share, all while working in a way that mitigates risk and satisfies regulations.


Data Informs Every Decision

Financial services rely heavily on data to inform its decision-making processes. Each and every decision made relies on a steady stream of real-time information. Without it, financial institutions would be unable to make informed and accurate decisions, such as whether to approve a loan or invest in a particular asset.


Data solutions can also help identify inefficiencies and areas for improvement in their operations. By analyzing data on internal processes and workflows, financial institutions can identify bottlenecks and inefficiencies while implementing process improvements to increase efficiency and reduce costs.


But analytics don’t just help institutions safeguard against risk and errors. Data, when synthesized and presented accurately, can help financial institutions identify opportunities for growth and expansion. Think of the customer’s journey with their bank of choice, for example. Customers can come into a branch, log-in on their mobile device, call the contact center, or send messages back and forth with a specialist through the chat function. 


Customers can come into a bank location or visit an ATM to make deposits and withdrawals. They can even take their debit card wherever they go. 


With so many services and options available to the client, it means that the bank has to track and accumulate data for each channel. Banks are faced with multi-channel environments with complex interactions for each customer. In order for organizations to maximize value, they need systems that use data to break down the silos, unify information, build customer personas, and make intelligent recommendations based on the customer’s journey. 


Those personalized recommendations are just one vital part in an effort to provide excellent customer service. Customer data can be used to improve customer engagement and satisfaction by analyzing data on customer behavior, preferences, and feedback. Businesses can use customer data to identify opportunities for cross-selling and upselling, and personalize marketing and communication to improve customer engagement and loyalty.

Further Examples of Integration

Seamless integration of data systems are valuable for numerous aspects of the financial services. For example, credit card companies use data analytics to identify fraudulent transactions in real-time. This security not only reduces the risk of financial losses, but is a tremendous value add to the institution when stopping fraud early. There is also the reputation and  peace of mind that is granted to their customers. Finally, integration provides a solution when fraud does strike, allowing for a quick resolution.


Institutions are able stay ahead of the curve by providing insights into emerging trends and technologies. Financial institutions have to constantly be evaluating emerging technologies like AI and blockchain, while not hastily overcommitting to unproven technologies. Financial Institutions are traditionally slow moving and inflexible, but the ones who can pivot quickly and quickly innovate are the ones who will own the next 25 years.

Future Forecasting and Predictions

The future of data analytics in financial services looks promising, with continued advancements in technology, increased data availability, and the rise of artificial intelligence and machine learning. These developments will enable financial institutions to provide deeper insights to their customers, further reducing risk, increasing profitability, and creating better results for their clients. 


For example, we talked about the Silicon Valley Bank saga earlier. But what could SVB have done to avoid disaster? SVB likely should have looked at rising interest rates while cross-referencing their balance sheet. From this, Silicon Valley Bank needed to develop projections on when and how to liquidate assets, or pivot to raising funds to prevent a total collapse.


With billions of decisions being made every single day in finance, having the inside track for the best and most accurate data is a must-have competitive advantage. Data analytics are a necessity for firms to integrate, learn, and utilize to best service their customers, provide the best forecasting, and maximize revenue. 


The benefits are clear, but finding the right organization to partner with for the ultimate solution can be cloudy. We invite you to connect with us and schedule a consultation with our team. At Brewster Consulting Group, we ensure that your systems drive better business outcomes and create real value for your organization. To learn more about our team, subscribe to our newsletter, Brews For Thought!


With decades of financial services experience including Risk, Regulatory, Data Governance, Analytics, Mortgage, Retail, and Commercial expertise, our team can help you. Let us help you build a data system that works for your organization that provides clarity, insight, and simplicity.

The Crucial Role of Measurable KPIs in Project Management

By Tim Lee • 22 Dec, 2023
For businesses that want to scale and grow, the ability to measure and evaluate progress is vital for achieving an organization’s goals and ensuring its sustained growth. In this blog, we'll delve into the importance of having measurable Key Performance Indicators (KPIs) with tangible outcomes, and highlight the repercussions that neglecting this fundamental practice can have on your team, your company, and your overall success. The Pitfalls of Unmeasurable Outcomes Imagine navigating a ship without a compass – the result is a directionless journey fraught with uncertainties, during which no one knows if they’re on the right track or in what ways they could course-correct or improve. This is the reality, whether it’s obvious to them or not, that all companies lacking measurable outcomes and clear goals face the risk of. Some are better at ‘faking it until they make it’ than others, but sooner or later the unpreparedness and lack of proactivity that mark these groups will make itself known. Without a compass to guide them, organizations may struggle to understand their performance, leading to wasted resources, missed opportunities, and the potential for project failure. The Costly Consequences of Unorganized Goals Consider Company X, which embarked on a marketing campaign without establishing specific, measurable objectives. Without clear metrics, the team found it challenging to assess the campaign's progress and success. While they had no insight into their success, valuable time and budgets were squandered and the company failed to capitalize on potential market opportunities that they otherwise could have had they been more organized and prepared. This scenario illustrates the critical need for measurable outcomes to guide decision-making and optimize resource allocation. The Power of Measuring Results On the flip side, organizations that embrace measurable outcomes and lean into the valuable data they can derive from them are equipped to make informed decisions, adapt to changing circumstances, and thrive in the competitive business landscape. Take Company Y as an example, which implemented a project management system that tracked and measured key performance indicators at every stage within a major year-long project. This project required several teams to work interdependently, which meant many moving parts. Knowing this, Company Y created several workflows that allowed for progress tracking, data collection, and more efficient collaboration. As a result, they could analyze data in real-time, identify bottlenecks, and make timely adjustments. They knew where they were, what was working, and what they needed to do to get better. This proactive approach not only enhanced project efficiency but also enabled the company to make data-driven decisions that positively impacted its bottom line. Key Performance Indicators for Small Businesses Now that we've established the importance of measurable outcomes, let's explore some Key Performance Indicators that all small businesses should track to ensure improvement and growth. Customer Acquisition Cost (CAC): Knowing how much it costs to acquire a new customer helps businesses allocate marketing budgets more effectively.  Customer Lifetime Value (CLV): Understanding the long-term value of a customer enables businesses to prioritize customer retention strategies. Project Timeline Adherence: Tracking project timelines ensures timely completion, helping small businesses build a reputation for reliability. Employee Productivity: Monitoring individual and team productivity ensures optimal resource utilization and identifies areas for improvement. This could include Revenue per Employee, Profit per Employee, or a number of other metrics. Return on Investment (ROI): Calculating the ROI of various initiatives helps businesses focus on activities that generate the most significant returns. Tracking KPIs can be a daunting task, especially for small businesses navigating the complexities of project management. Brewster Consulting encourages businesses to prioritize measurable outcomes and clear KPIs, while helping them create tailored solutions to streamline the tracking, analysis, and solution-creating process. By doing this, companies can steer their projects with precision, avoid the pitfalls of unorganized goals, and position themselves for sustainable success and growth over time.

The 5 Keys to Building a Project Management Office: A Guide

By Tim Lee • 22 Dec, 2023
Project Management - we’ve heard this broad term used by almost every company, especially in the last few years; but what does it actually mean, and better yet, how can it actually be put into practice to help your company succeed? At Brewster Consulting, we partner with businesses of all sizes in navigating the complex terrain of project management. In this blog, we will cover a few basics that we feel are pivotal attributes that mark a successful Project Management Office (PMO).  1) A Robust Project Intake Process At the head of any successful PMO lies a robust project intake process. This process acts as the gateway for project initiation, ensuring that only projects aligned with the company's strategic objectives and overall mission gain approval. Brewster Consulting advocates for an objective and repeatable intake process, one that stands the test of time and promotes consistency in decision-making. A repeatable process with a well-defined sequence of steps that can be easily replicated not only saves time but also ensures that every project, regardless of its scale or complexity, undergoes the same scrutiny and evaluation. Meanwhile, objectivity guards against subjective biases that may cloud judgment or cause a team to become unfocused. By helping them to establish clear criteria for project evaluation, Brewster Consulting empowers organizations to make informed decisions based on project merit, aligning projects with the overarching goals of the company. 2) Objective Prioritization Once projects are in the pipeline, the next crucial step is prioritization. Brewster Consulting advocates for an objective approach to prioritization, focusing on criteria such as strategic alignment, resource availability, and potential impact on the organization. This ensures that projects that are deemed to be the most impactful are tackled first and are given the priority and resources that could have gone to other projects had the prioritization process been less streamlined or less organized. Objective prioritization prevents the arbitrary ranking of projects and promotes a data-driven, decision-making culture within the organization. Brewster Consulting provides the tools and methodologies needed to objectively assess and rank projects, allowing companies to allocate resources efficiently while also maximizing their return on investment. 3) Standardized Method of Implementation When most people think about Project Management and a PMO, Implementation is immediately where they go. Brewster Consulting emphasizes the importance of a standardized method of implementation to streamline project execution according to PMI best-practices. By establishing standardized processes, companies can reduce the risk of errors, enhance collaboration, and accelerate project delivery. Brewster Consulting works with organizations to develop customized project management methodologies tailored to their unique needs and resources. This ensures that teams across the organization are on the same page, adhering to best practices and driving projects to successful completion. For small businesses, this aspect is especially helpful to ensure that resources are being utilized as efficiently and effectively as possible. 4) Nimble Change Management Change is inevitable in the realm of project management, meaning that effective change management is essential for smooth project delivery. This involves not only anticipating and managing resistance, but also proactively communicating changes to all throughout the project lifecycle. Brewster Consulting collaborates with organizations to develop comprehensive communication plans that address the needs of stakeholders at every stage of the project. By fostering a culture of transparency and open communication - pillars of effective Project Management - organizations can navigate change with confidence, ensuring that projects stay on course despite the inevitable twists and turns. Effective Change Management needs to be creative and exciting for ownership and buy-in to take place. Brewster Consulting employs creative tactics for Change Management including round table discussions, open office hours, and other means to ensure the change is adopted and supported. Emails and weekly project updates are good, but they’re not going to get you the buy-in you need long-term. You need to get creative. 5) Accurate Results Measurement Results measurement may be the most vital piece of a PMO. Establishing strong and consistent KPIs, navigating how best to analyze the data from projects, and then learning from and acting on said data is paramount to an organization’s success on any project. For companies both small and large who want to make the most of their resources, complete projects efficiently and successfully, and develop workflows that allow for constant improvement, results measurement cannot be ignored. This element of the PMO journey encompasses all of the other components discussed above - Brewer Consulting is passionate about coming alongside businesses and helping them continuously refine their project management processes. Building a Project Management Office is an outstanding strategic investment in the future of any organization. Brewster Consulting is passionate about guiding businesses through the intricacies of project management, providing the framework above to aid in creating and maintaining a standard of excellence for your process. Click here to see Brewster Consulting’s COO, Tim Lee, talk about these five keys.

The Future of PMOs: Driving Innovation, Agility and Value

By Tim Lee • 22 Nov, 2023
For business owners and founders feeling stuck in your data strategy, the evolution of the project management office (PMO) provides hope. By partnering with a forward-thinking PMO implementation partner, you can break free of rigid project management models to embrace agility, innovation and value creation.
The Strategic Role of the PMO in Driving Business Objectives for SMBs

The Strategic Role of the PMO in Driving Business Objectives for SMBs

By Kade Brewster • 14 Nov, 2023
The Project Management Office has evolved from a purely administrative function into a strategic driver of business objectives. While larger enterprises have embraced strategic PMOs, many small and midsize businesses assume they lack the resources for robust project governance. However, implementing even basic PMO capabilities can provide huge value to SMBs by aligning projects, improving visibility, and driving ROI. Here are key ways SMBs can leverage PMOs to enable growth.
The Strategic Advantage of a Fractional Business Intelligence Manager

The Strategic Advantage of a Fractional Business Intelligence Manager

By Kade Brewster • 30 Oct, 2023
For ambitious small businesses looking to grow, making data-driven decisions is no longer a “nice-to-have” - it is a competitive necessity. However, many companies lack the expertise and resources to implement an enterprise-grade business intelligence (BI) program that transforms data into strategic insights. Hiring a full-time BI manager or team is costly and often exceeds the company’s needs. This is where partnering with a Fractional Business Intelligence Manager can provide tremendous strategic value.
Your Guide to Customer Journey Mapping for Small Businesses

A Comprehensive Guide to Customer Journey Mapping for Small Businesses

By Kade Brewster • 16 Oct, 2023
Frustrated by your lack of insight into your customer's behavior? Maybe you're struggling to understand where you win or lose customers on your website. It's time to invest in customer journey mapping! Our complete guide walks you through each detail and enables your small business to feel confident about winning more customers with each visit to your site!
A Project Management Office can help your small business be productive and efficient

Empowering Small Businesses with PMO Implementations

By Tim Lee • 12 Oct, 2023
Do you feel like you've run out of bandwidth? You’re in a constant state of change and evolution, all while competing with other companies who may have more resources and larger budgets. In order to keep up with your priorities and continue to scale your business, you need a Project Management Office (PMO) to manage organizational assets and opportunities. In this article, we’ll explore what a PMO is and why it is such an asset for growing businesses.
Building a Data Dictionary for your Small or Mid Sized Business

Building a Data Dictionary for your Small or Mid Sized Business

By Kade Brewster • 04 Oct, 2023
Is your team totally aligned on procedures and KPIs? How do you know if they are? Data Dictionaries are a critical component of the growth strategy for successful businesses. In this article, you'll learn what a Data Dictionary is, how you can build it, and what benefits your business experiences as a result.
Here's why your business team is battling bad data and what you can do about it

Why Your Data Sucks (and What to Do About It)

By Kade Brewster • 19 Sep, 2023
Businesses go about their workdays without realizing an important problem: their data sucks. Bad data is a serious roadblock, but there is a solution. Learn about the signs and pitfalls of bad data, but more importantly, learn about what you can do about it!
hospital staff know they can operate efficiently thanks to data optimization

Healthy Data, Healthier Futures: PMOs' Impact on Healthcare Performance

By Tim Lee • 12 Sep, 2023
Data analytics plays a pivotal role in the healthcare industry by transforming vast amounts of medical and patient data into valuable insights that drive informed decision-making, improve patient outcomes, and enhance operational efficiency. Learn more about how healthy data leads to healthier futures and better patient care.
More Posts
Share by: