Financial services have a lot to gain from data. It can help them make more informed loan decisions, protect customers, improve marketing, and more – but only if they can use it correctly. Many financial businesses find themselves with too much information from too many sources than they know how to manage.
Financial institutions have more customer data than anyone else, but some experts suggest they only use 0.5% of it. Cloud data integration platforms, which combine data from many sources to offer a single cloud-based view, can help. Once these businesses’ data is more unified and organized, they can truly capitalize on it.
Five Top Benefits Of Cloud Data Integration
Here are five specific benefits of cloud data integration for the finance industry.
Regulatory Compliance
The finance sector is highly regulated, so these businesses must ensure the way they gather, store, and use data is legal or face massive penalties. Capital One, for example, had to pay $80 million for failing to identify and manage its cloud data risk.
Cloud data integration platforms help by providing a complete view of a business’s data. Financial companies can see all their data, sources, and uses from one window, making it easier to spot possible regulatory problems. They can then apply any fixes across the board, ensuring they don’t overlook anything.
Personalized Customer Experiences
Cloud data integration also lets financial service companies personalize their customer experiences. Tailoring services to each customer requires a fairly deep understanding of their needs and wants. Banks and similar businesses can achieve that by pooling everything they know about a customer in one place.
Every piece of information only tells part of the story. Financial companies need to look at all of the data they have on each customer to get the complete picture, and that’s what data integration offers. They can then personalize their customer service, increasing loyalty and satisfaction.
More Effective Social Media Strategies
Similarly, cloud data integration helps financial businesses improve their social media strategies. Interacting with users on social media is crucial for understanding customers and attracting new ones. However, balancing these conversations with a consistent voice across all platforms can be challenging.
With cloud data integration, banks can see how their actions line up on each social site. They’ll then have an easier time maintaining a consistent voice and understanding users’ voices and needs across all channels.
Data Privacy
Privacy is a leading concern for any data operation, especially with information as sensitive as financial data. While not every cloud data integration platform helps maintain privacy, some offer helpful built-in protections — though their security approaches are often different. Consider Matillion’s Data Loader and RightData’s Dextrus; two leading platforms businesses may use for cloud ETL/ELT.
To ensure privacy, Data Loader uses encrypted servers and a network security system that constantly monitors for attacks to help secure businesses’ data warehouses. Dextrus, on the other hand, employs machine learning, role-based access controls, and observability dashboards to improve transparency and ease of use in data security. Both methods can be useful for different contexts.
RightData’s solution simplifies complex data operations to help workers ensure performance and protection with minimal time and expertise. This type of security solution can be beneficial for busy companies with plenty of other things on their minds. When looking for security and privacy, consider your needs and determine which platform’s security measures best suit your business.
Fraud Detection
When financial businesses have a complete, unified view of their data, it can lead to another helpful security tool: AI fraud detection. Machine learning tools can analyze this data pooled from various sources to learn how customers act and spot abnormalities. They can then flag suspicious behavior, stopping fraud in its tracks.
These AI systems have improved fraud detection accuracy by 90% and reduced investigation times by 70%. It’s no wonder that more than 72% of banks have implemented these tools. However, they need a single source of truth to be effective, and cloud data integration provides that.
Cloud Data Integration Is a Must for Financial Businesses
Financial businesses can make substantial improvements if they capitalize on their vast data resources. To do that, they need cloud data integration. When these companies can pool all their information into a single, more easily manageable place, they can take full advantage of it.