Your most pressing data questions - addressed for the financial services industry

In today’s data-driven world, financial services professionals are inundated with an overwhelming amount of information. The sheer volume is staggering—humanity generated 328.77 million terabytes of data per day in 2023, equating to 120 zettabytes annually. The financial services sector alone is projected to produce over 5.1 billion gigabytes of data daily by 2025, significantly impacting decision-making processes and operational efficiencies. With such vast amounts of data at our disposal, processing and understanding it can feel daunting. For busy marketing professionals in finance, navigating this extensive landscape often seems like an impossible task.

Questions about data quality, accessibility, security, and actionable insights dominate discussions within the industry. In fact, a recent survey revealed that 71% of finance professionals believe that data-driven insights are crucial for enhancing customer satisfaction. Let’s address some of the most pressing data questions and explore how to effectively leverage data to drive growth, enhance customer engagement, and improve ROI.

1. How do I know if my financial data is reliable?

Reliable data is the foundation of every successful strategy in the financial services industry. The key lies in assessing data quality through:

• Completeness: Are all necessary financial fields populated, such as account numbers and transaction details?
• Accuracy: Is the financial information current and correct, including balances and transaction histories?
• Consistency: Does the data align across all systems and channels, such as CRM, accounting, and regulatory reports?

To ensure reliability:

• Implement regular data audits tailored for financial metrics.
• Use data cleansing tools to eliminate duplicates and outdated records specific to financial transactions.
• Partner with a provider that guarantees high-quality financial data, like Data Axle’s solutions.

2. How can I use data to understand my audience better?

Understanding your audience in the financial services sector begins with creating a 360-degree view of your customers. This includes:

• Leveraging data from multiple sources: CRM systems, transaction histories, market research, and third-party data aggregators.
• Using tools like identity resolution to connect fragmented data points into a unified customer profile, identifying key demographics and financial behaviors.
• Employing AI and machine learning to uncover patterns in spending, saving, and investment behaviors that can inform product offerings.

Knowing your audience at a deeper level allows you to deliver personalized, timely, and relevant financial services. Partnering with a solutions provider, such as Data Axle, can help deliver the data you need to obtain this 360-degree view of your financial consumers. Read more about our Audience360 solution.

3. What’s the best way to approach data privacy and security in financial services?

As consumers become more concerned about privacy, financial institutions must prioritize transparency and compliance:

• Follow regulations like GDPR and CCPA, ensuring you work with vendors that are also in compliance and that are aware of upcoming regulations specific to financial data.
• Implement robust security measures such as encryption, tokenization, and regular vulnerability assessments to protect sensitive financial information.
• Build trust by being transparent about how you collect, store, and use customer data.
  Consider privacy not just as a compliance requirement but as an opportunity to foster customer loyalty in an industry where trust is paramount.

4. How do I make my data actionable?

Data only becomes valuable when it’s used effectively. To make your financial data actionable:

• Set clear goals: Define what success looks like in financial terms (e.g., lead conversion rates, customer acquisition costs).
• Segment your audience: Use data to create targeted segments based on financial behaviors, demographic information, or lifecycle stages.
• Integrate across channels: Ensure your teams have access to a single source of truth for a seamless customer experience in all financial interactions.

Real-world example: A financial advisor who segmented their clients by investment preferences and financial goals saw a 25% lift in engagement.

5. What should I know about the future of data in financial services?

The data landscape is rapidly evolving. Key trends to watch include:

• The rise of zero-party data: Collecting data directly from customers with their explicit consent, particularly in the context of financial services.
• AI-driven insights: Using machine learning to process massive financial datasets faster and with greater accuracy.
• A cookie-limited future: Preparing for a world where first-party data and innovative identity resolution solutions become essential in understanding customer behavior.

Data is one of your most powerful assets, but only if you ask the right questions and act on the answers. From ensuring data quality to embracing new technologies, the journey to becoming a data-driven financial organization is ongoing—but worth every effort.

Got more questions about data? Let’s continue the conversation on LinkedIn or contact us directly to learn how we can help you harness the full power of your data.