How are you managing your data?
That’s the question of the hour for banks and credit unions in 2019. And we’re going to tell you why in this third installment of our 2019 Financial Services Marketing Trends blog series covering data management outsourcing.
The Move to the Cloud
Due to the sensitive nature of personal finance information, banks have historically wanted to maintain all customer data inside their own walls. But, with increased data analytics capabilities, this is no longer the most viable option. We’re now in an age where it is necessary for banks to modernize legacy systems and leverage the power of the cloud, so they can take advantage of all that data analytics have to offer.
And as privacy laws have gotten more stringent, many security concerns have been alleviated and banks are now more open to outsourcing their data management to technology partners. Cloud-based solutions are particularly appealing given the complex IT infrastructure within most financial institutions; outsourcing to the cloud can be a much simpler, streamlined approach than managing data across 20-30 applications and systems in house.
Here are some of the top reasons to consider outsourcing your data management to the cloud this year.
Outsourcing Provides Lower Costs
Managing 20-30 applications and systems in house is not only cumbersome, but also costly. Outsourcing data management functions to cloud-based solutions allows you to significantly reduce overhead costs. The potential to consolidate functionality into fewer systems could save on vendor/license fees and hardware costs, and require fewer IT staff to monitor and update all relevant systems.
Additionally, as stated in this Financial Brand article, “Implementing cloud technology automates operations and workflows, resulting in increased efficiency, security and cost savings.”
When you outsource data to the cloud, you take the burden off your staff, freeing them to focus on more mission-critical tasks. This also enables you to eliminate costly, manual processes and streamline data management functions across departments.
For community banks and credit unions looking to expand their customer base and offerings, cloud-based data outsourcing will become increasingly important. Cloud solutions provide you with the capacity you need to take in and manage more data as your business grows.
This is evident when transactions increase across a bank, as happened in 2014 when MasterCard had to provide for more than a 25% increase in traffic and up to 4 million transactions an hour on Black Monday. In this kind of situation, banks that outsource their front-end systems to the cloud can easily scale to handle and process large volumes of data.
Fintech Collaboration Opportunities
The rise of the fintech industry has pushed traditional bank marketing to innovate and digitize in order to remain competitive and retain customers. But, there is also a growing number of opportunities for banks and credit unions to collaborate with fintech companies for robust customer solutions. In fact, more than 54% of bankers are increasingly partnering with fintech companies.
This collaboration requires banks to share and exchange data with their fintech partners who can enable the banks to deliver highly personalized services using the data. This is a lot easier to accomplish when banks use cloud-based solutions, as these typically have open APIs that allow for more system integrations. These integrations will enable you to work better with fintech companies, so you can deliver their services to your customers.
What’s the Right Solution for You?
360 View offers both a hosted and non-hosted investment banking CRM solution, depending on your bank’s IT strategy. We recognize that choosing between the two options is a big, weighty decision with a lot of factors involved. Our team is full of former bankers who have been in your shoes and understand the crossroads you may be at.