Utilizing Data Science to Make Sound FI Decisions

By W.B. King

When expertly managed, the practice of data science can lead to greater productivity, better data communication and enhanced data-driven decision-making. This is among findings in a recent FinTech Futures white paper, Bridging the Gap Between Data Science and Decision-Making in Financial Services.

“For data teams in fintech and finserv firms, productivity is paramount. Good productivity not only benefits business objectives but also means that team members feel motivated and happy in their work,” the report noted. “Data scientists, engineers and analysts we’ve spoken to report that good productivity often hinges on three key aspects [effective and efficient collaboration, good oversight and effective training/onboarding].”

For over 40 years, the London-based FinTech Futures has provided reports, intelligence and insights to the global fintech industry.

“The need for user-friendly access to data is also hugely important for decisionmakers in fintech and finserv firms. Decision-makers and stakeholders seek cogent interpretations of complex data that can be transformed into actionable insights, which can ultimately guide strategic decision making,” the report stated, adding that recent polling found that 78% of financial services professionals want to increase their use of data analytics to inform business strategies.

“Whether it’s big banks seeking to enrich the customer experience in the B2C (business-to-consumer) space or fintech firms entering new markets, clear and understandable data is critical to achieving strategic business objectives,” the report continued. “Decision-makers up to and including the C-suite want the confidence that comes from knowing that insights and decisions are directly driven by high-quality data and insights.”

Dismantling Data Barriers

To effectively use data, the report stated that all departments, often siloed, must join together. To this end, 74% of respondents said that data technology had the potential to give the teams within their financial services business more time on “value-added” initiatives.

“We’re seeing a diversification of needs in terms of who is accessing and using data within firms. As such, the need for data science democratization is an absolute necessity for firms. Further, it isn’t just a benefit for end users to be able to access data and generate insights more readily – it also makes strategic business sense,” the report noted. “Data science democratization means dismantling barriers to use on a wider operational level, removing unnecessary gatekeeping to data and freeing up resources within data teams.”

While the aforementioned figure demonstrates a need for organizational change, the report also stated that more than 36% of brand-side marketers noted a lack of data and analytics skills within the marketing function as an area of concern. “Perhaps with systems in place that allow for insight generation without the need to code, marketing team members would feel more empowered to work with data, alleviating the need for highly skilled data expertise within their teams.”

Enhancing Efficiency

The report also noted that while survey respondents have maintained in-house data platforms for many years, nearly three in five (58%) professionals experience issues with the effective use of data software.

“Vendor solutions may be much better equipped to minimize maintenance costs. And, while software as a service (SaaS) platforms require very low maintenance, they are in many cases not viable for larger finserv companies,” the report stated. “Whether it’s an on-premises or SaaS solution, businesses need to be confident that a shift towards a new data platform alleviates maintenance issues and accordingly represents a good return on investment.”

Data science democratization presents the opportunity for organizations to “open up” data accessibility, the report found. “With intuitive tooling, the possibilities to access data, generate insights and power data-driven decision-making is an exciting prospect for firms seeking better business efficiencies.”