# Three Ways the Data Cloud Can Keep Financial Services Competitive Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-02-02 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Agility and Innovation in Financial Services: Navigating the Meta Description: Discover how financial organisations can navigate volatile markets, adapt to changing regulatory laws, and deliver first-class digital experiences using the URL: https://financedigest.com/three-ways-the-data-cloud-can-keep-financial-services-competitivehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-70-1736838598091-compressed.jpg) _By **Matthew Glickman,** VP Customer Product Strategy, Financial Services,_ [_Snowflake._](https://nam05.safelinks.protection.outlook.com/?url=https%3A%2F%2Fprotect-eu.mimecast.com%2Fs%2FTj82CZ84rIDoY1Uz8X0k%3Fdomain%3Dsnowflake.com&data=02%7C01%7CRory.Powrie%403monkeyszeno.com%7C1e0de4cc20e64d716ea308d795d82689%7Cb824bfb3918e43c2bb1cdcc1ba40a82b%7C0%7C0%7C637142627904831336&sdata=5QV9R1ImxVojNjX0Ud0FT%2Bmt51VM6%2Fy79aajbYNvjqQ%3D&reserved=0) Last spring the pandemic forced businesses to adjust operating models and adapt in a volatile economic market, something they’re continuing to grapple with in 2021. Changes in regulatory laws, such as the Strong Customer Authentication (SCA) rules that will come into effect in the UK in September, will also add another layer of complexity for organisations. Yet despite these challenges, consumers still expect financial services to deliver first-class, digital experiences. Financial organisations will find that agility will make it easier for them to navigate the current climate and give them a significant edge in the [months ahead](https://www.financedigest.com/dutch-governor-knot-signals-ecb-will-keep-raising-rates-in-months-ahead-ft.html "Dutch governor Knot signals ECB will keep raising rates in months ahead- FT"). By adopting emerging technologies, such as the data cloud, they can shore up their [digital functions and embrace](https://www.financedigest.com/why-the-time-is-right-for-finance-to-embrace-digital-change.html "Why the time is right for finance to embrace digital change") innovative new models that will enable them to stay competitive. With this approach, these companies will be agile to [customer demands and therefore one step](https://www.financedigest.com/uk-banks-and-insurers-told-to-step-up-help-for-struggling-customers.html "UK banks and insurers told to step up help for struggling customers") ahead of their competitors. Here are three tangible [benefits of mobilising the data](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") cloud. **Creating a Personalised** [Customer Journey](https://www.financedigest.com/how-to-navigate-a-seamless-journey-from-cio-to-chief-customer-officer.html "How to navigate a seamless journey from CIO to Chief Customer Officer") The cloud [offers companies](https://www.financedigest.com/factbox-european-companies-offer-one-off-bonuses-hike-pay-amid-cost-of-living-crisis.html "Factbox-European companies offer one-off bonuses, hike pay amid cost-of-living crisis") the opportunity to house all their various types of data in one secure place, enabling them to personalise services for customers. By using the data cloud, companies have a consolidated governed location for all types of data (for example, clickstream, transactional, and third-party) that can ingest data from new sources such as IoT devices. This enables organisations to gain a 360-degree view of customer behaviours and preferences from multiple inputs. A full customer [view](https://www.financedigest.com/insurance-marketing-is-more-targeted-with-the-single-customer-view.html "Insurance marketing is more targeted with the single customer view") is fundamental for a successful personalisation strategy as it enables organisations to pinpoint high-value customers and ensure they have a good experience at every touchpoint. Without real-time visibility into [customer interactions, providing the best possible customer experience](https://www.financedigest.com/improving-customer-experience-and-profits-with-embedded-payments.html "Improving customer experience and profits with embedded payments") just isn’t possible. ![Matthew Glickman](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/matthewglickmanvpofproduct-450x675-1736838597687-compressed.jpg) Matthew Glickman Over time, [digital banking](https://www.financedigest.com/standard-chartered-rolls-out-digital-bank-in-hot-singapore-market.html "Standard Chartered rolls out digital bank in hot Singapore market") platforms will evolve to incorporate ML predictive models to drive even more personalised banking behaviours. This will only be [achievable for organisations who successfully tap into the data cloud](https://www.financedigest.com/the-journey-to-cloud-native-overcoming-hurdles-to-drive-modernisation-and-achieve-long-term-success.html "The journey to cloud-native: overcoming hurdles to drive modernisation and achieve long-term success"), as the success of ML models will require support from ever increasing volumes and access to datasets, both within and external to an organisation. The more an organisation can tap into customer personalisation, the better equipped they will be at customer retention and remaining competitive. **[Sharing Data](https://www.financedigest.com/global-shares-slide-dollar-gains-as-rates-rise-on-strong-data.html "Global shares slide, dollar gains as rates rise on strong data") in Real-time** To ensure [fintechs can continue providing the best possible customer experiences](https://www.financedigest.com/how-real-time-data-innovation-is-driving-up-customer-experience-in-fintech.html "How real-time data innovation is driving up customer experience in fintech"), and adapt to any demands posed by the pandemic, having an acute awareness of all data available will be key for these insights. Especially during periods of [financial regulation changes](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape"), such as the impending SCA legislation we’ll soon experience. Adopting a cloud data [platform](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform") that offers the direct and secure sharing of data without the complexity, cost, and risk associated with legacy data warehouses is one such solution. With simpler, enhanced data sharing, companies can quickly and easily add new data products, and get near real-time [insights across](https://www.financedigest.com/flooded-battery-to-remain-top-choice-across-industries-accounting-for-49-0-of-lead-acid-battery-sales-in-2021-future-market-insights.html "Flooded Battery to Remain Top Choice across Industries, Accounting for 49.0% of Lead Acid Battery Sales in 2021: Future Market Insights") the business ecosystem on how this is operating. Offering a standalone [data product to data consumers](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") can lead to substantial revenue. For example, financial companies that collect tick-by-tick stock [market data](https://www.financedigest.com/sterling-little-changed-after-mixed-labour-market-data.html "Sterling little changed after mixed labour market data") can use a cloud data platform to create a data project that they can sell to hedge funds. A cloud data platform can also [reduce](https://www.financedigest.com/driving-returns-and-reducing-risk-with-data.html "Driving returns and reducing risk with data") the manual effort and copying that is necessary with traditional data sharing tools. Instead of physically transferring [data to external consumers](https://www.financedigest.com/power-to-the-people-how-consumers-are-calling-the-shots-when-it-comes-to-data-privacy.html "Power to the people: how consumers are calling the shots when it comes to data privacy"), companies can provide read-only access to a segment of their information to any number of data consumers via SQL. By breaking through barriers between disparate data systems, [companies will find new sources of revenue](https://www.financedigest.com/multigrain-bread-mix-market-size-share-top-leading-companies-consumption-drivers-trends-forces-analysis-revenue-challenges-and-global-forecast-2029.html "Multigrain Bread Mix Market: Size, Share, Top Leading Companies, Consumption, Drivers, Trends, Forces Analysis, Revenue, Challenges And Global Forecast 2029") and opportunity. **Third-Party Collaboration** The rise of digital-first banks, the increased availability of online services and the ongoing surge in mobile banking all represent the [modern evolution of how customers now interact with their finances](https://www.financedigest.com/why-do-modern-finance-functions-strive-for-automation.html "WHY DO MODERN FINANCE FUNCTIONS STRIVE FOR AUTOMATION?"). To meet the demands of today’s customer, financial [organisations will see big benefits in collaborating with other finservs through real-time access to data](https://www.financedigest.com/avoiding-a-big-data-car-crash-how-to-organise-your-data-to-detect-fraudulent-claims.html "Avoiding a big data car crash: How to organise your data to detect fraudulent claims"). For instance, if a customer is using a third party fintech to track their finances, a [financial institution must share data](https://www.financedigest.com/how-can-financial-institutions-make-the-most-of-data-for-their-business.html "HOW CAN FINANCIAL INSTITUTIONS MAKE THE MOST OF DATA FOR THEIR BUSINESS?  ") with that fintech organisation so their customers can access their accounts. Last year, [65% of banks and 76% of credit unions said partnerships with fintech companies will be an important part of their business strategies in 2020](https://hs.crnrstone.com/banking-2020?__hstc=242444893.6b9d4491f4c671e372fc80cd21858727.1600986050858.1600986050858.1600986050858.1&__hssc=242444893.2.1600986050859&__hsfp=1089211427). These numbers represent an increase from 49% and 60%, respectively, in 2019, showing a clear trend towards a more [open banking](https://www.financedigest.com/isnt-it-time-open-banking-delivered-for-businesses.html "Isn’t It Time Open Banking Delivered for Businesses?") landscape. Financial institutions that do not take steps to improve the accessibility of its [data](https://www.financedigest.com/financial-services-firms-turn-to-big-data-intelligence-to-fight-fraudulent-activity-according-to-xerox-study.html "FINANCIAL SERVICES FIRMS TURN TO BIG DATA INTELLIGENCE TO FIGHT FRAUDULENT ACTIVITY ACCORDING TO XEROX STUDY") risk frustrating their customers or losing them to a more agile and collaborative financial institution. Data collaboration can also help improve instances where [investment banks](https://www.financedigest.com/investment-banks-trading-revenue-likely-to-shrink-barclays-boss-says.html "Investment banks’ trading revenue likely to shrink, Barclays boss says") may otherwise have been forced to hold excess capital. This is because aligning on risk exposures and liquidity is executed through nightly correspondances instead of what could be real-time data sharing through the cloud. With fully governed, [secure data](https://www.financedigest.com/cyber-security-data-re-assurance.html "Cyber Security: Data ‘Re’-Assurance") sharing, companies can also easily determine who sees what and ensure all business units and business partners access a single and secure copy of their data. Not only does this enhance efficiency, but centralising [data into a single source of truth, rather than in separate locations, will boost data security](https://www.financedigest.com/how-financial-services-can-secure-data-and-build-trust-in-todays-modern-environment.html "How financial services can secure data and build trust in today’s modern environment"). The continued difficulties of the pandemic, regulatory changes and ever-increasing [customer expectations present an array of challenges that finance companies must](https://www.financedigest.com/theres-a-fine-line-between-relinquishing-control-and-accountability-financial-institutions-must-balance-both-to-successfully-cloudify-operations-and-meet-customer-expectations.html "There’s a fine line between relinquishing control and accountability. Financial institutions must balance both to successfully cloudify operations and meet customer expectations") remain vigilant of. By tapping into the data cloud, [companies use data to overcome these challenges by building a future-proofed technology](https://www.financedigest.com/mldw-technology-market-size-share-top-leading-companies-consumption-drivers-trends-forces-analysis-revenue-challenges-and-global-forecast-2028.html "MLDW Technology Market: Size, Share, Top Leading Companies, Consumption, Drivers, Trends, Forces Analysis, Revenue, Challenges And Global Forecast 2028") stack that delivers business agility, competitive customer services and data sharing capabilities. Each of these aspects will [offer opportunities](https://www.financedigest.com/convenience-offered-by-home-automation-solutions-to-offer-opportunities-for-market-players-iot-has-encouraged-the-demand.html "Convenience Offered by Home Automation Solutions to Offer Opportunities for Market Players; IoT has Encouraged the Demand") for finance companies, giving them the best possible chance of succeeding during an economic period marked by ongoing volatility. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---