Greater amounts of heterogeneous data is needed for organisations to accelerate the development of their analytics and access the ‘gold mine’ of information at their disposal, according to CRIF Decision Solutions.
The information services provider has reached the conclusion in a new report it has published, entitled ‘the golden age of data in financial services’.
The report examines the fact as an industry financial services has never had access to as much potential as currently possible, due to the vast amount of information at each organisation’s disposal.
However, to utilise this to an optimum level this data needs to be thoroughly pre-processed according to CRIF.
The report reads: “Without heterogeneous data to start from, it is not possible to speed up the development of all the analytics necessary to leverage this new information ‘gold mine’.
“The pre-processing of data is crucial to making unstructured data easier for machines to analyse and to increasing data quality.”
CRIF has found while structured data is easily searchable, in that state it does not exploit its full potential and needs refining to make this possible.
To open up data to Open Banking, the report advocates the use of advanced analytical applications using AI-based categorisation engines. These use machine learning for gradient boosting and deep neural networks.
The report added: “These engines can apply AI text mining to detect and classify data e.g. for profiling, customer segmentation or other commercial purposes. However, the combined ability to manage very large data volumes with the availability of sophisticated AI technologies is not something commonly available in the current market.
“The early development stage of the Open Banking market is limiting these capabilities to only a few providers and, even amongst those, there is still a significant capability gap and, in some cases, significant unexploited processing potential.”
Elsewhere, the report arrived at other conclusions to how financial services can capitalise on its ‘golden age’ of data.
This includes the continual recognition of the end user in all digital experiences.
To accomplish this, speed, flexibility, transparency, trust and engagement need to be embedded in such experiences. According to CRIF, these values can help overcome barriers to adoption.
The report added: “End users do not need to recognise the term ‘Open Banking’ to understand its benefits. Ultimately, it is all about value to users and how the analysis of customer data can improve their financial lives.”
Get your free copy of CRIF exclusive 30-page report: ‘The golden age of data in financial services’ by clicking the link below; https://info.crifdecisionsolutions.co.uk/the-golden-age-of-data-in-financial-services?