Customer data has always held value for banks and financial institutions. Understanding consumers is one of the basic principles of good business, no matter what industry you work in. And anticipating what your customers want and how to satisfy their needs can turn a good business partner into a great business partner.
As technology advances in the banking sector, it’s increasingly more critical to have access to customer data to stay competitive in the industry. We’ve watched banks struggle to keep up with technology in this rapidly changing market. Regulations change, markets rapidly shift and new fintech competitors are squeezing their way in to swallow up that precious market share.
Let’s look at how banks can stay ahead of the competition by using data solutions to better understand their customers and act accordingly.
Why Banks Are Pursuing Integrations?
Technology is a key decider in who wins and loses in this rapidly changing market. To survive, banks need to act like a fintech by providing the digital solutions their customers want and care about.
For example: The number of deposits from a bank’s BaaS partnerships or the number of loans originating from their partner platforms include critical information for business decisions. If a bank receives too many deposits, there are missed opportunities to create income. If there are too many loans and not enough deposits, they could potentially overextend themselves.
This example shows why integrated systems are important to helping banks understand their entire ecosystem. With connected systems, they can make smarter, more informed business decisions.
According to research completed by Cornerstone Advisors, 46% of banks surveyed are considering a BaaS strategy sometime in the future. Even banks that are not leading financial institutions with cutting-edge technology understand that this strategy is in their future.
Banks have developed great partnerships with digital services to offer customers the best solutions for their finances. Unfortunately, these providers are not in the business of building integrations with other providers. This leaves a lot of banks with underperforming tools or the lack of knowledge and expertise to fully utilize the services they’ve invested in. Either scenario leaves data providers with a less-than-happy customer.
Simply offering digital solutions is just one part of staying on the cutting edge of technology. The second part is integrating and managing integrations in order to see the whole picture of a bank’s customer. Providers who offer solutions and a process to implement those solutions will come out ahead of the competition.
Bridging the Gap With Data Mesh Solutions for Banks
How can you keep bank customers satisfied with your products and interested in the technology solutions you offer? With a partner focused on integrations and implementation.
Mesh builds the integration from the bank’s disparate systems.
Mesh enables banks to increase revenue opportunities, customer retention, and market share through:
- A diverse set of fintech and core integrations.
- A holistic and complete view of customer data.
- Ownership of the technology stack.
Through Mesh, Core10 offers multiple options to help with data integration, including data lakes and data warehouses.
A data lake is a way to economically store all your raw data for future use. Think of the scenario where you pull all the data from a BaaS provider or a banking partner. If you transform that data and normalize it too early in the process, you may miss data.
Your data lake should serve as the single source of truth. If there is a discrepancy later on, you can go back to the raw data and obtain the data that you need to resolve any issue.
Data warehouses structure data for improved performance, which allows you to make more informed decisions. Normalizing the data by aggregating it from your core, BaaS provider, etc., a data warehouse then pulls the data into a smaller database for reporting purposes.
For example, you only want to see your debit transactions or your credit transactions. If you were to run your reports on top of your data lake, the data would be overwhelming and would result in reports that are messy and slow. This is why data warehouses are valuable. They aggregate the data and makes sense of it for reporting decision-making purposes.
Why Choose Data Mesh Solutions for Banks?
Managing partnerships without integrations in place costs banks time, money, and accuracy.
Without a data integration solution like Mesh, banks experience:
- More manual labor through the use of Excel to collect data.
- Difficulty receiving data from vendors to use for reports and decision-making.
- Lost revenue due to difficulty connecting with partners and lack of automation.
- Increased risk from manual processes.
- Under-utilizing the skills of employees due to menial tasks.
Mesh powers core and fintech connections on a cloud-based, single- or multi-tenant, event-driven microservices platform equipped with robust security and monitoring.
With Mesh integration as a data solution tool, we provide:
- Rapid innovation. Plug-and-play vendors deliver the best-of-breed solutions your customers want.
- Fintech-forward technology. Our APIs are open and documented so clients can find new partners and add revenue streams.
- A 360-degree customer view. We bring data together from multiple systems to provide a holistic view of the customer.
- A solution that scales. Our team can meet banks and fintechs where they are on their technical journey and scale to cutting-edge solutions.
- Stack ownership. Banks can take ownership of their integrations to add value, ensure business continuity, and mitigate risk.
Perhaps you're like our client, Encore Bank, who came to us for help integrating the latest technology to serve its customers and efficiently manage its own processes. By integrating Mesh, Encore was able to reduce manual processes and capitalize on new business opportunities in their commercial lending sector.
Data Mesh solutions for banks make your data actionable by sharing all the information from multiple systems into one cohesive platform. And Core 10 is here to help you make it happen. Schedule a free consultation with one of our integration experts today.