It is amazing how some topics continue to stay relevant in banking despite the passage of time. One such topic is the importance of customer analytics in banking. In 2013, I referenced a report from Celent entitled, Customer Analytics in Banking: Why Here, Why Now?, where senior analyst, Bob Meara wrote that it was the time for banks and credit unions to leverage the advances in processing, memory, database design and analytic methods to improve performance and reduce costs.
While the Celent analyst noted that some institutions are already on the path of using advanced analytics for decisioning and optimization, other organizations had only limited experience. I am republishing the article that did not get transferred from my previous blog since the topic (and the examples) are as true today as they were when the Celent report (and my blog post) were first published.
In the report, it is noted that financial marketers need to extract more value from internal and external data sources, guiding product development, customer communication, innovation and growth. According to Celent, the use of advanced analytics in banking is correlated to the size of organization even though the cost of processing data is no longer as much of a barrier as even five years ago.