Infotech Lead India: Oracle survey says financial services are losing 20 percent of revenue by not utilizing data effectively.
According to 94 percent of financial services executives, their organization is collecting and managing more business information today than two years ago, by an average of 75 percent more.
“Banking channels are becoming more diversified, with mobile and online banking leading the way in generating increasing amounts of customer information. At the same time, regulators have called for more rigorous and granular supervision and oversight of financial information,” S Ramakrishnan, vice president and general manager, Oracle Financial Services Analytical Applications.
“While data continues to grow, financial services organizations must learn how to use the information available to satisfy regulators and customers alike. This report highlights the importance for institutions to think analytically and ensure managers have the applications and access they need to examine business-critical information first hand,” Ramakrishnan added.
For all industries collectively, 94 percent of C-level executives say their organization is collecting and managing more business information today than two years ago, by an average of 86 percent.
The biggest data growth areas are coming from customer information (48 percent), operations (34 percent) and sales and marketing (33 percent).
Financial services executives say they are not prepared to handle the increasing amount of data they face, said Oracle sharing the results of its From Overload to Impact: An Industry Scorecard on Big Data Business Challenges report.
Twenty-five percent of financial services executives give their organization a D or F in preparedness to manage the data deluge. Fifty-six percent give their organization a C or below. Only three percent of executives give their organization an A in preparedness.
Financial services respondents say that are unable to realize, on average, 12 percent of additional revenue per year, translating to an average $64.6 million per year (figure based on the average revenue of financial services organizations surveyed) — by not being able to fully leverage the information they collect.
For all industries collectively, 60 percent of executives give their organization a C or lower in preparedness to manage the data deluge, and 93 percent believe their organization is losing revenue opportunities — representing on average, 14 percent of revenue per year.
On average, private-sector organizations with revenues of $1 billion or more say they are losing approximately 13 percent of incremental annual revenue as a result of not being able to fully leverage their information. That translates to $130 million each year for a $1 billion organization. Only 8 percent of executives give their organization an A in preparedness.
Respondents from the financial services industry note they are most frustrated with the fact that information is no longer timely when it gets to business managers, with 38 percent citing this as a key issue.
Rounding out their top data management frustrations, 34 percent of financial services executives say they do not have the right systems in place and 34 percent say their existing systems are not designed to meet the specific needs of the industry.
Ninety-one percent of financial services organizations use industry-specific applications and software to help leverage information to make strategic decisions, the highest across all industries in the study.
