Why Is Data Integration Important in Financial Service Industry?
As per the existing figure, an unbelievably huge amount of data are generated every day. These data provides financial institutions with an untapped potential to gain greater insights into existing clients, new business opportunities, target audiences, and the competitive landscape. Data integration services lie at the core of such valuable business insights.
The challenges for the financial institutes:
However, this flood of data poses significant challenges for the financial institutes. One of the reasons is, much of their data is stored and managed in legacy systems. Moreover, industries dealing with financial services are highly regulated. They are required to strictly follow all the legal and regulatory compliance, as well as maintain data security and fraud detection.
In recent years, banks and financial institutes have faced enormous regulatory challenges. Many complex and costly framework have had to be implemented
and are still being implemented. Data availability is a key success factor in the implementation process.
Rapid technological development and digital transformation are forcing financial institutions to pay particular attention to technological aspects. Many other competitive factors in their strategic management also depend much on the streamlined data integration services.
Key benefits of streamlined data integration in the financial service industry:
Fraud detection and compliance
For fraud detection and compliance, real-time data integration is critical. Streaming data allows businesses to obtain data as soon as it becomes accessible, allowing financial services institutes to spot anomalies as soon as they arise. Real-time visibility, combined with AI and machine learning, allows fraud detection teams to identify possible dangers before they become major issues.
Because of the lack of connection between old systems and newer investments such as cloud platforms, many firms are missing out on the potential to work with real-time data. Data integration bridges the gaps between the legacy system and the newer technologies.
Insights about Customers
Ensuring the best customer experience has always been a challenge for the financial institutes. Understanding the customer’s financial needs goes far deeper than just meeting the regulatory requirements. Data integration have come a long way in providing valuable customer insights. With less expensive
cloud storage and better processing power, leading companies have started to tap into data integration services. The sole reason is to gain insights that can be used to drive competitive advantage.
Data integration across transactional systems, customer relationship management, and digital marketing automation can be critical for businesses. With this, financial institutes can achieve the 360-degree view to better understand customer needs, avoid losing clients to competitors, and engage customers in new ways.
Boost your business efficiency
Much of the innovation that has occurred in recent years has been based on cloud computing and mobile devices. The financial services has adapted to these developments, providing a variety of innovative services based on online technology and mobile phones to customers. Customers and banks alike benefit from services like remote deposit, online bill pay, and electronic statements.
However, much of the integration code for such apps has been done the hard way, with specialised one-off projects that take a long time and cost a lot of money. Innovation has occurred, but at a high expense, and the long-term costs of sustaining custom integration may be substantial.
Automating and streamlining those integration processes will make it easier to extend business applications for new innovation. It will also enable financial services organizations to evolve the existing integration code with much more ease. It will also lower their total cost of ownership for the long-term.
Following are some of the key points to notice when it comes to data integration for financial institutes.
· Data integration associates a single banking customer with all their accounts and financial products.
· Data integration opens new avenues for research and analysis.
· Data integration collects, stores, and extracts data from various reliable sources.
· Financial institutes use data integration to understand their customers better so as to provide better customer experience.
· Data integration helps banks in improve processes and reducing risks.
· Banks use data integration to fine-tune their customer segmentation.
The amount of data available to businesses will certainly expand over time. As the amount of data collected expands over time, it can be used in a variety of complicated procedures to meet the needs of next-generation commercial apps powered by AI and machine learning.
Manage and secure all your organization’s data with Evolvus Solutions
Whether your focus is data use, protection, governance or reporting, you can completely rely on Evolvus Solutions’ Data integration Services. Unlocking the value of your data requires a real-time, single and accurate view of company data across multiple domains and sources. Evolvus data integration solutions help you eliminate fragmented analysis, errors, security concerns, and data governance
issues. Get direct, real-time access to data security and compliance reports and insights with Evolvus Solutions’ Data Integration services.
Data Integration Team of Evolvus
Data Integration Team of Evolvus have comprehensive understanding and experience of handling the complexities and challenges of the Data Integration solutions. They are capable of developing futuristic, compliant systems that address the complete data migration lifecycle and allow seamless consolidation of disparate systems.