Will Data Drive Your Company's Next Big Decision?

Business Intelligence Data

One of my responsibilities as a freelance business intelligence consultant is to help my clients understand data that will be vital to future decisions. In fact, data drives my clients' decisions if I'm doing my job correctly. That knowledge, combined with a recent news story about digital banks, leads me to ask this question: will data drive your company's next big decision?

The story I'm referencing details consumer attitudes about digital banks that base their entire business models on mobile apps. These are banks that don't maintain brick-and-mortar branches that customers can visit in order to do business face-to-face. It turns out that this once hot business model is not so attractive any more. It would behove any company thinking of opening one of these new banks to tread slowly.

People More Wary of Digital Banks

According to a 5th March article published by Business Insider, the number of UK consumers who believe digital banks are trustworthy enough to do business with has fallen sharply. How sharply? From 78% to just 54% in less than a year. That is a shocking drop by any standard.

The numbers in the Business Insider story were furnished by a business intelligence company who surveyed more than 2,000 consumers they said make up a "nationally representative sample of the banked population" in the UK. That's important because the company needed to get the sample right if the numbers were to mean anything.

Not only did their survey reveal a surprising drop in confidence but it also showed an increase in the number of people doing business with digital banks. According to the survey, 68% of the banked population now uses a digital bank with no brick-and-mortar locations, up 10 percentage points from 2017.

Interpreting the Data Correctly

Let's say you run a financial services company thinking about getting into the digital banking business. How do you evaluate this data? On the one hand, consumers trust digital banks less than they have in the past. On the other hand, the number of people using digital banks has increased.

As a freelance business intelligence consultant, I would advise you to look at the data in light of your overall goals as a financial institution. Because the data sets are conflicting, your organisation's goals would determine which data set is most valuable to you. Decision makers would then act accordingly.

The key here is to interpret the data correctly. Does a lack of trust always equal a loss of business? And even if it doesn't, as is the case with digital banks right now, will that lack of trust have an impact on the number of active customers in the future?

As a business intelligence consultant, my job is to help you sort out the data and apply it to your situation. Before you make any decision about future goals, we need to talk. Let's find the most relevant data and apply it so that your decision-makers make the right decision.

Sources:

Business Insider – http://www.businessinsider.com/rfi-group-willingness-to-use-app-only-start-up-banks-falls-in-uk-2018-3?r=UK&IR=T

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Author: Chris Scanlon

Hullo.  I'm a graduate chartered accountant with 25 years experience in blue chip businesses and the last 15 years in owner manged businesses.  My particular skill is turning data into information. Bringing the performance management of the business alive so that ...