I had the pleasure of attending a presentation by a vice president of a regional bank. He led the presentation with this statement, “What is important to our customer is important to our Bank”.
Customer success is a key factor for any business, but banks are finding it necessary to compete in today’s environment. This regional bank has made it central to their mission. In the ever changing world, they found their business grew very quickly with more than 30 acquisitions during the last few years. Between acquisitions and organic growth, they now have 800 branches, offering a full suite of commercial banking products and wealth management services across the US and in Europe.
While growth is wonderful, it creates additional business needs and requirements to maintain success. For example, each department had a unique version of information about the same customers. Although they would say that each department “knows their customer,” it was only true at the departmental level. If that customer interacted with another department, there was no guarantee that employees would have the same view of the same customer. A consistent view of customers across multiple departments didn’t exist. Additionally, banks must adhere to strict regulatory requirements. Compliance with growing and new regulations became more difficult and complicated as the bank grew in size, customers, and revenue. They discovered that many employees would spend almost all of their time pulling data together and compiling regulatory reports.
Like most businesses, they tackled these challenges and worked diligently to solve their issues on their own, building seven home-grown solutions in twelve years. However, these purpose built solutions were using up the technology budget and increasing the time and cost to deliver without solving their overall problem. With the added pressure of complying with Know Your Customer (KYC) regulatory requirements, the bank’s data management challenges continued to grow. They recognized that they did not have an enterprise level single source of truth for party information data and had limited ability to link their customer data across the organization.
Informatica was chosen, not solely to be their technology vendor, but as a strategic partner to help them solve these data challenges. Together, we would build foundational capabilities to help enable their business to be more efficient when complying with regulations as well as focus on enhancing their customers’ overall experience across the bank.
How did they do this? With executive sponsorship from the CIO, the technology team took the lead and worked closely with the business to define a strategic approach and implement an Enterprise Data Strategy. Their recipe for success involved:
- Creating a Data Governance organization
- Maintaining communication with different organizations
- Executive sponsor communicating with other executives
- Learning to embrace change
With Informatica MDM, the bank now has an enterprise platform built to centrally govern and manage party information data. As a result, they are able to better service their customers, continue to protect and expand their market share, and satisfy regulatory requirements. With a foundation of trusted data, their employees are able to:
- Increase marketing effectiveness
- Improve the client / customer experience
- Increase employee productivity and ease of doing business
- Reduce the cost of technology to operate the bank
- Educate developers and testers in the business domains