According to the Chartered Institute of Bankers Nigeria (CIBN), data analytics will have a huge influence on the banking sector, creating values in terms of providing their services effectively. Uche Olowu, president and chairman of CIBN believes that there is a need for collaborations between fintech and banks to ensure that the ongoing digital revolution will lead to more cost-effective services for customers. “We shall ensure that banks leverage data analytics to render more efficient services, but banks cannot do that alone, because fintechs are disrupting the space. The best banks could do now is to create a strategic alliance with fintech providers because the manner in which banking services are delivered is changing,” says Olowu. The customer service channels and business models are evolving; banks need to leverage new technology and renew their service agreements with customers.
With data analytics, banks would have better insights into their customers and would allow banks to properly utilize data to increase customer service efficiency and their bottom line. Part of the problem faced by banks is their inability to utilize the available data efficiently. “The business intelligence systems and data warehouses that banks have today tell them what they already know but its judicious use is the problem,” says Olowu. Compared to telecommunication operators that are proficient at creating actions from the data that they possess, banks lack actionable data sets that allow them to complete fulfillment services in a timely manner. The solution to creating actionable data sets relies on building analytical models that take data from the traditional data warehouses and business intelligence solutions. “There are many opportunities that the banks are missing because of their inability to harness the advantage of their data,” adds Olowu. Actionable data is critical to help banks retain customers and increase profits. Combining in-house data with external opportunities would help banks find and close new businesses.