Building a Future in Banking and Capital Markets
Banking and Capital Markets are undergoing a period of transformation. The global economic outlook is somewhat fragile, but banks are in an excellent position to survive and thrive as long as they have the right tools in place. According to Deloitte’s report 2023 Banking and Capital Markets Outlook, banks must find ways to adapt to global disruption and understand the changing needs of consumers to find success. And much of this involves finally harnessing data and new technologies to the fullest potential.
Many of Deloitte’s Predictions Will Require Access to Real-time Data Analysis
The report lists several areas where consumer demand will shift banking products. Without a clear plan, financial institutions could face serious consequences to their bottom line. For example, consumers are less likely to tolerate “junk fees” and will begin shifting away from traditional banks to non-traditional and online options to avoid them.
The report mentions several key areas ripe for a data revolution. First, the retail banking space must contend with new technologies such as cryptocurrencies and develop applications that advance ESG initiatives, racial equity, and security. This means moving beyond product-centric thinking to a data-driven customer experience model that’s consistent across all channels.
Next, the wealth management industry is also shifting away from a product focus to a client-centric model. Data will enable this industry to shift to scalable solutions and ensure greater customer loyalty. Commercial banking is also at this precipice and must leverage data-driven decision-making to help customers deal with supply chain shocks, inflation, and a fragile economy.
Using an integrated and actionable view of data, banks and capital markets can develop:
- Deeper relationships with their existing customers.
- A robust understanding of potential new customers.
- New products and services that meet the demands of a generation of new consumers.
In each of these, financial organizations need access to real-time data to understand customer behavior, identify key customer frustrations and pain points, and develop products that provide true value.
Financial Institutions Must Also Leverage Cutting-edge Technologies
Banks and financial institutions are currently reassessing the value of traditional services and exploring boundary-pushing new products and services that can exist in the world as we know it. Geopolitical conflicts, recent monetary policy and regulations, and fractured payment systems can cause significant difficulty in delivering consistent, high-quality services to a global consumer base.
Deloitte has already identified these areas as potential opportunities:
- Embedded finance: A financial product within a non-financial customer experience, such as private label store credit cards
- Tokenized assets: Digital tokens on the blockchain, representing physical and digital products
- Financial technology: New, cutting-edge services and platforms that deliver better financial experiences over web and cloud
- Digital identity: Verification of identities without face-to-face or physical documentation
- Green finance: Financial services that support sustainable initiatives — something more consumers are demanding
In each of these opportunities, banks and capital markets will need to leverage not only data but also technologies that make processing data possible. For example, using artificial intelligence and machine learning, banks can better protect customer identities across multiple channels while ensuring that sensitive customer data remains absolutely secure.
These Tools Require a Steady Supply of High-Quality Data
Institutions in the banking and capital markets industry have massive amounts of data. They need a way to ensure the security and quality of data feeding new technologies such as AI-enabled tools, digital verifications, and customer 360 experiences.
The problem many banks have is that data tools are fractured and dependent on manual processes. These institutions need a holistic view of data that connects to all platforms and applications, including any legacy systems. Only then can they supply the amount of data required to understand customer behavior and deliver dynamic customer experiences.
In addition, financial data is highly sensitive and subject to multiple regulations and privacy requirements. If banks and capital markets can leverage centralized governance based on moving only the data necessary for processing and attribute-based access controls, they will be able to leverage more data faster.
The banking and capital markets industry is on the precipice of something new. Companies must pivot toward services that consumers crave while grappling with changing regulations and integrating new technologies and services. If they can streamline their data pipelines to provide actionable insights, they can usher in the next generation of financial services and survive the next global disruption.
DataOS is the world’s first operating system. It can provide banks and capital markets with a seamless data architecture designed to modernize legacy systems without replacing them and upgrade current tools with minimal impact to operations. Instead of a patchwork set of tools and multiple copies of data, users can customize dashboards for the insights they really need. In addition, business users can leverage drag-and-drop engineering to build pipelines without extensive coding.
If the finance industry can leverage an operational layer, fractured data ecosystems will become a challenge of the past. To find out how DataOS can make this a reality for your financial institution, contact The Modern Data Company for a demo and see it all in action.
Subscribe to
Our Blog
Be the first to know about the latest insights from Modern.
People Also Read
Solving The Persistent Challenges of Data Modeling
The elegance of Data Products is undeniable, but many leaders question the efficacy of their data strategies: Why does the return on data investments often disappoint? Why is proving data's value becoming harder? Why do data models become more cumbersome than...
Building Your Data Product Machine: Less Tech, More Strategy
Data is vital to business but the process of getting from data to insights is often murky. Many on the business side may not even care how it happens but understanding this process matters. It matters a lot. With this in mind, let's explore how to demystify the...
How a Data Product Strategy Impacts Both Business and Tech Stakeholders
We don't want to restrict the scope of this article to only data leaders and influential executives. As startup folks, we are confident in how individual contributors or ICs, such as Data Engineers, DevOps experts, or even the surprising intern, could influence the...
Why Evolutionary Architecture is Important in a Data-Driven World
It's a tale as old as time. A startup manages to disrupt an entire industry only to find itself at a critical juncture a few years down the road. Data, the lifeblood of its operations, was becoming increasingly complex and unwieldy. With each new product launch and...
The Just-In-Time Revolution for Data-Driven Enterprises
For today's Chief Data Officers (CDOs) and data teams, the struggle is real. We're drowning in data yet thirsting for actionable insights. Traditional data architectures, with their centralized data lakes and batch-oriented processing, are like bloated, slow-moving...
Latest Resources
A Modern Data Strategy for Enterprises – 2nd Edition
A Modern Data Strategy for Enterprises – 2nd EditionStuck with unusable data? Enterprises drowning in information can unlock its true value with Modern DataOS. Take a data products approach and create secure, high-quality data packages designed for specific business...
A Paradigm Shift in Data Management – 2nd Edition
A Paradigm Shift in Data Management – 2nd Edition Buried in data silos? Traditional data management is slow, rigid, and keeps valuable insights locked away. Enter a paradigm shift: Data Products. These are user-friendly, pre-packaged datasets designed for specific...
Creating a Single Source of Truth (SSOT)
Creating a Single Source of Truth (SSOT)[placeholder] Traditional project-centric data management stifles AI innovation with siloed data, slow workflows, and limited reusability. Enter the era of data products: self-contained modules of data, logic, and infrastructure...
DataOS Sales Accelerator for Food & Beverage
DataOS Sales Accelerator for Food & Beverage The dynamic food & beverage industry demands a data-driven approach to success. The Modern Data Company's DataOS® Sales Accelerator acts as your all-in-one data concierge. Our pre-built solutions, designed...
Unleashing the Power of AI with Data Products
Unleashing the Power of AI with Data Products Traditional project-centric data management stifles AI innovation with siloed data, slow workflows, and limited reusability. Enter the era of data products: self-contained modules of data, logic, and infrastructure that...