5 Ways Data Integration is Transforming the Finance Industry
2.5 quintillion bytes of data are created each day, and that number is continuously growing. For financial organizations and services, that represents a wealth of information about existing business customers, novel business opportunities, target market audiences, and the competitive landscape.
However, this tsunami of data acts as a roadblock for financial units because a major part of it is stored and managed in legacy systems. Integrating all the sensitive records requires IT teams to work incessantly for six to 12 weeks. The delays introduced can disrupt the entire data integration process and related steps. And the company’s ability to deliver the value promised to customers and accelerate revenue growth diminishes.
To add to those challenges, the finance industry is highly regulated, so companies in this industry must prioritize legal and regulatory compliance along with data security and fraud detection. Also, the sudden proliferation of myriad data types in recent years creates further complexities around data integration.
The financial industry is specifically IT-intensive. Many companies have to manage more than ten internal or external data sources that are fundamental to their business processes. The problem that arises from this fact is systems handling so many data streams at once tend to land up in the world of data silos if any robust data integration solution isn’t present. In an industry that evolves rapidly, that is enough to keep them behind the curve.
The solution is to adopt a modern data integration approach as it helps financial organizations manage the data volume, gather insights, make informed decisions, and deliver the value promised to customers and partners. Overall, these solutions can be a game changer for the world of finance.
Let’s find out how these companies can leverage modern data integration solutions to transform their business.
1. Integrate Data Faster
Like any other industry, the financial services industry also rests on data. If the data streams gathered from various business partners, agents, and customers aren’t integrated properly, there’s a high chance that insights garnered would be incomplete and so would the decision-making and value generation. Another problem is when data integration takes time. This happens especially when legacy data integration solutions are used. Because when legacy solutions are used, IT integrators take six to 12 weeks of calendar time. The delays incurred act as major roadblocks for companies attempting to deliver the value promised to their customers on time.
Modern solutions such as self-service data integration can save companies this trouble. These solutions enable non-technical business users to implement data connections much faster than legacy integration solutions.
2. Speed Up Onboarding by 80 percent
Modern data integration solutions enable non-technical business users to onboard complex, highly-sensitive data streams up to 80 percent faster. Users can point and click through easy, intuitive screens to implement onboarding connections more quickly. This means users can connect with partners and customers sooner, which helps them address their needs and deliver faster than ever.
3. Enable Fraud Detection and Compliance
Modern data integration solutions provide an end-to-end encrypted environment for all the data streams that are exchanged and transferred between companies in the application. Every user is individually authorized and authenticated as they register and log in to the application.
Many of these solutions also perform data interaction in real time, which proves extremely important for companies managing fraud detection and compliance. Streaming data enables financial companies to access data much more quickly, which helps them identify anomalies as soon they appear. The use of AI and machine learning algorithms during the data mapping process further reduce potential risks of fraud and data breaches.
4. Foster Productivity Across the Board
Self-service data integration enables non-technical business users to integrate complex, bi-directional data streams – at the speed of business. At the same time, IT becomes free to focus on other business priorities. These solutions, therefore, improve the productivity of non-technical business users and IT teams.
5. Delight Customers and Grow Revenue
When business users connect with customers quickly, it becomes easier to identify their needs and deliver on them quickly. And so, customers feel delighted. Such delighted customers are more likely to invest in other products or services offered by the company. This enables financial organizations to grow new revenue streams for the business.