Financial institutions are embarking on digital transformation journeys and migrating to the cloud. These strategies help them maintain a competitive edge during tough economic times and enable them to comply with highly fragmented global regulatory standards. According to an Accenture survey, 53% of respondents in the retail banking industry believe cloud-based technologies have the biggest impact on improving the operational efficiency of their industry, and 40% believe cloud-based technologies generate business value for their industry.
A cloud data platform such as Snowflake provides the foundation on which companies can build a technology stack that will deliver business agility and growth. Here are three ways financial services companies can benefit from a cloud data platform.
Better Customer Experience
The cloud offers companies the opportunity to house all of their various types of data in one secure place, enabling them to personalize services for customers. Snowflake Cloud Data Platform offers a single governed location for all types of data (for example, clickstream, transactional, and third-party) that can ingest data from new sources such as the Internet of Things. This enables organizations to gain a 360-degree view of customer behaviors and preferences from multiple inputs.
A full customer view is fundamental for a successful personalization strategy because it enables organizations to pinpoint high-value customers and ensure they have a good experience at every touchpoint. Without real-time visibility into customer interactions, that isn’t possible.
New Sources of Revenue
A cloud data platform such as Snowflake offers the direct and secure sharing of data without the complexity, cost, and risk associated with legacy data warehouses. With simpler, enhanced data sharing, companies can quickly and easily add new data products. Offering a standalone data product to data consumers can lead to substantial revenue. For example, financial services companies that collect tick-by-tick stock market data can use Snowflake to create a data project that they can sell to hedge funds.
Snowflake can reduce the manual effort and copying that is necessary with traditional data sharing tools. Instead of physically transferring their data to external data consumers, companies can provide read-only access to a segment of their information to any number of data consumers via SQL. By breaking through barriers between disparate data systems, Snowflake empowers companies to find new sources of revenue and opportunity.
Mitigated Fraud and Risk
A cloud data platform that ingests and analyzes various data types can form the front line of defense against cyber threats and fraudsters. With Snowflake’s automatic and infinite scalability, per-second compute pricing, and low storage costs, financial institutions can affordably store petabytes of historical data and index all of their cybersecurity, anti-fraud, and machine- and customer-generated data. They can then use advanced data analytics, detection rules, and enhanced visualizations to analyze that data and be more prepared for future threats.
In-depth data finance data analytics combined with high-volume data storage can help detect risks quickly, often in real-time. The result is higher data security, cost-effective investigations, and earlier detection. These benefits translate to higher consumer confidence and loyalty, and they lower costs for fraud and cybersecurity mitigation.
To learn more about how Snowflake is helping financial services organizations including banks, brokerages, insurers, and fintech startups solve challenges and become truly data-driven, download our ebook, 5 Ways Data is Redefining Financial Services.
“¹Accenture Cloud Readiness Report – Banking.” https://accntu.re/3fkpeVF
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