Sap to Syrup: Refining Data into Actionable Insights

Sap straight from a maple tree tastes a lot like water, with little discernable maple flavor and only a hint of sweetness. To make maple syrup, sap can only be collected during a short period in spring and in specific weather conditions. It’s then boiled down to concentrate the sugars and create the delicious syrup we all love. It takes about 40 gallons of maple sap to make just one gallon of maple syrup. Similar to the amount of sap it takes to make syrup, community financial institutions (CFIs) have a lot of untapped data at their hands. When used with the right tools and expertise, a lot of smart business decisions can be made. Challenges Around Use and Management of DataFormer Google CEO Eric Schmidt famously said: “There were five exabytes of information created between the dawn of civilization through 2003, but that much information is now created every two days." The vast amount of data at a CFI’s disposal offers significant opportunities to boost performance. However, the financial services industry faces numerous issues due to the variety and large volume of complex data it handles. For example, data teams need to effectively communicate data insights with stakeholders and decision-makers, as clear and understandable data is critical for achieving strategic objectives. However, it’s not a straightforward task, particularly when many firms are still reliant on legacy infrastructure with data stored on multiple systems across several departments. These challenges can make it difficult to see the whole picture at once and gain real-time insights into customer trends and patterns. What’s more, explaining and sharing data findings with non-specialists can be onerous and an inefficient use of data experts’ time, diverting them from key duties. Data Challenges for Decision-makers Every aspect of the banking industry, from customer transactions and lending decisions to fraud prevention, depends on data-driven insights to guide informed decision-making.As the digital landscape evolves with the emergence of cloud computing, artificial intelligence, and machine learning, CFI decision-makers are acutely conscious of the urgent need to modernize as they aim to redefine operational efficiencies and customer experience. For instance, legacy systems are labor-intensive and open to human error, so CFIs are seeking new systems that will integrate with the old platforms. As they invest in new platforms, they need to be confident that insights and decisions will be driven by high-quality data, and analysis will be delivered in accessible formats. Innovative, Data-Driven, Tailored Solutions To navigate these challenges, CFIs are increasingly turning to data-driven platforms that not only integrate with legacy systems but also enhance their decision-making processes. As they invest in these new technologies, the focus shifts to ensuring that data analytics will drive insights and decisions, providing high-quality, actionable information.Data analytics is revolutionizing the banking industry, transforming everything from customer profiling and segmentation to fraud detection, lending decisions, cybersecurity, risk management, compliance, and client support.Decisionmakers want formats that are user-friendly and easy to access and interpret. A platform that can be used by stakeholders, regardless of skillset, will help to improve productivity and the communication of data, and means that data teams can concentrate on their key role. When considering the adoption of new data-driven platforms, it's essential to focus on several key factors to ensure successful integration and maximized value for your organization

With the right data analytics at their disposal, CFIs can offer customers personalized plans and financial solutions by analyzing their banking history and spending patterns. This not only improves a customer’s experience, but helps banks to target and differentiate their services, resulting in better customer retention. FIT for Future Business HealthOne such solution is PCBB’s online profitability analysis tool Profitability FIT™. It’s designed to harness the power of data mining, providing deep insights into financial behavior across key metrics such as ROE, net interest margin, and ROA. This robust analysis allows CFIs to make data-driven decisions, optimize their financial strategies, and, as a result, gain a clearer picture of customer profitability.With the right tools, the treasure trove of data at an institution’s disposal can enable CFIs to make faster, more informed decisions, identifying opportunities to offer customers a personalized service that will in turn help increase customer loyalty, profitability, and shareholder returns.