Beyond Profits

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Three intangible benefits data analytics programs can deliver

By Steven Simpson

Community banks are sitting on a gold mine of customer data. For the past few years, the biggest drive to use analytics software programs was to simply achieve the tangible business results: uncover profitable customer segments, zero-in on profitable trends and demographics, improve fraud detection, and boost marketing investment returns.

But beyond the tangible results of generating greater profits, are there intangible benefits to implementing data analytics within your community bank? Absolutely! The greatest is fostering a more productive workplace culture. Consider these three potential benefits.

Empowerment: Data analytics empowers sales and marketing teams with factual, proven data that drive results and become more precise over time. Analytics can provide insight to better segment customers, take action on these customers, and then measure the action impact to create recurring best practices. Weaving an analytics strategy into the fabric of a bank can create accountability and a more goal-oriented environment

Because data can take the guesswork out of processes and plans, they can eliminate room for excuses when employees attempt to make targeted, effective decisions in a timely manner. Plus, employees will feel more valued because they are making better, more informed decisions that lead to greater opportunities for the bank while improving customer experiences.

Alignment: Data analytics can remove silos and the hierarchy statuses because data create bankwide transparency to answer tough questions such as, What products and services are truly profitable? When everyone is armed with data-driven truths, the team unites to work toward the common goal—improving franchise value.

Making advanced analytics an integral part of the culture naturally sheds inefficient practices and redundancies. It reduces flawed results and skewed answers. When employees and management analyze and trust data, they can focus on the vision, mission and core values of the bank.

Motivation: Motivated and engaged employees intrinsically lead to higher performance. When employees are armed with the metrics necessary to identify opportunities within the data and take action, morale improves. Employees feel a sense of ownership because they make better decisions. Integrating data analytics into a corporate culture and giving employees the confidence to believe that data analytics can deliver results will ultimately give banks a distinct competitive advantage.


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Steven Simpson (steven.simpson@saggezza.com) is senior vice-president–financial institutions at Saggezza Inc., a global company with offices in Chicago and Santa Clara, Calif., that provides analytics products.

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