New Research from the International Institute for Analytics Examines Analytics Maturity Levels in Financial Services Industry

Research Sponsored by NGDATA Shows Data-Driven Decision Making and
Analytics Maturity of Traditional Financial Institutions Lag Behind
Those of Digital Native Companies

NEW YORK–(BUSINESS WIRE)–New research released today from the International
Institute for Analytics (IIA)
explores the relationship between
data-driven decision making, analytics maturity and success in the
financial services industry. Sponsored by customer experience management
solutions company NGDATA, this
research found that, while financial institutions are aware of the need
to be more data-driven, they are lagging far behind digital native
companies in their effective use of data.

For the study, IIA conducted a quantitative analysis on 17 key
competencies that differentiate high and low performing analytics. While
financial services was the second highest-scoring industry, earning high
marks for understanding the importance of analytics and making efforts
to be more data-driven, financial institutions nevertheless lagged far
behind digital native companies. Even high-scoring financial firms, the
report cites, “are highly data-oriented, have analytical tools, and make
wide use of analytics. However, there remains a lack of commitment to
fully compete on analytics or use it strategically.”

“This research demonstrates that financial services companies, while
able to see the value of analytics, are unable to mobilize their
organizations around them. This has created an opportunity for
technology companies to disrupt their business by delivering what
today’s consumers want – value from their service providers,” said Luc
Burgelman, CEO of NGDATA. “Financial organizations demonstrated a keen
understanding around the need to be more data-driven, but it’s critical
that they make the step towards operationalizing analytical insight,
especially when it comes to connecting with their customers and
preserving their business against the digital natives. Organizations
need to transform the customer experience by integrating data across all
channels and generating impact from analytics.”

The IIA report examines where organizations fall within a five-stage
maturity model. The financial services industry collectively achieved
Stage 3 – Analytical Aspirations – a category defined by an
understanding of the value of analytics and data-driven decision making
but an inability to infuse it into their operations. In order to achieve
Stage 5 – Analytical Nirvana, in which organizations use analytics
across the entire enterprise, both as a competitive differentiator and
in strategy – financial services companies must leverage technology
solutions that help them close the gap between their industry and
digital native companies and become more customer-centric.

The research also showed a positive correlation between a company’s
analytics maturity score and its adoption of analytics for marketing and
customer engagement: areas in which digital native companies excel at
using analytics. Financial services companies were far less likely to
use analytics in these areas. However, a separate survey
from NGDATA
announced recently found that customer expectations are
at an all-time high, especially among millennials, and that banks must
commit to exceptional, personal experiences fueled by analytics to
retain customers. Combined, these findings demonstrate a clear path to
disruption for digital native companies if financial services firms
aren’t able to engrain strategic use of analytics across their
organizations to improve the customer experience and create business
value.

The IIA study examined 28 market-leading financial services companies,
examining the analytical maturity of US banks, Canadian banks, wealth
management firms, credit unions, credit card processing companies and
insurance companies. Participating organizations included American
Express, Bank of America, Goldman Sachs, JPMorgan Chase, MetLife, Visa,
and Wells Fargo, among others.

To learn more about the research from IIA and NGDATA, including key
takeaways for financial services companies, please visit https://www.ngdata.com/iia-research-brief-analytics-transforming-financial-services/

About IIA
The
International Institute for Analytics (IIA)
is an independent
research and advisory firm for organizations committed to accelerating
their business through the power of analytics. Co-founded by Tom
Davenport and CEO Jack Phillips in 2010, IIA works across a breadth of
industries to uncover actionable insights from its global network of
analytics practitioners and industry experts. IIA members benefit from
access to experts and peers, an extensive research library with
documented best practices, faculty-moderated executive roundtables,
phone conversations, webinars and events. IIA also provides analytics
maturity assessments, and dynamic inquiry and consulting services,
allowing business leaders and analytics professionals to keep their
fingers on the pulse of analytics in the new data economy. For more
information about IIA, and how you can become a member, visit http://www.iianalytics.com or
call 503-467-0210.

About NGDATA
NGDATA®
helps data-rich companies in financial services, media/publishing and
telecom to drive connected experiences. The company’s next-generation
customer data platform, Lily™, puts people at the center of every
business via Lily’s Customer DNA, which continuously learns from
behavior to deliver compelling experiences for companies such as Belfius
Bank
, Innogy
and Telenet.
NGDATA is headquartered in Gent, Belgium and has offices in the United
States, Europe and Asia-Pacific. For more information, please visit www.NGDATA.com.

Contacts

fama PR
Dan Gaffney, 617-986-5036
NGDATA@famapr.com