Data Projects Can Deliver Long-Term Success

From launching new technologies and expanding digital banking platforms to enhancing customer experiences and meeting regulatory demands, banks today are balancing a range of strategic projects. The next time your management team presents a strategic technology plan, consider how data integration fits into the broader strategy. When should data unification become a priority?

This article explores two contrasting approaches — tackling data silos first versus implementing strategic projects without resolving data issues. The comparison highlights why prioritizing unified data is the better path forward.

Approach 1: Data First, Strategic Projects Second

Pros:
1. Holistic client view. A unified data system creates a comprehensive client profile, integrating insights from wealth management, retail banking and consumer lending. This allows personalized services that boost client loyalty and satisfaction.
2. Efficient operations. Clean, centralized data eliminates redundancies and reduces operational overhead. Tasks like compliance reporting, customer onboarding and credit assessments become faster and more accurate.
3. Scalable innovation. Banks with unified data infrastructures can easily adopt emerging technologies such as artificial intelligence-driven analytics, predictive modeling and automated financial planning.
4. Reduced risk and compliance costs. A single source of truth ensures better data governance and easier regulatory compliance, reducing the likelihood of costly penalties.

Cons:

• Initial investment. Consolidating data requires an upfront investment in technology, training and change management.
• Implementation timeline. Breaking down silos takes time, potentially delaying other business initiatives if not managed effectively.

Approach 2: Strategic Projects First, Data Unification Later

Pros:

• Quick wins. Launching new products or services might yield immediate returns and improve market competitiveness in the short term.
• Visible progress. Executive teams can showcase progress through quick project rollouts, appealing to stakeholders and investors.

Cons:

• Fragmented client experiences. Without integrated data, banks risk offering disjointed services. For example, a wealth client applying for a mortgage might face redundant data requests and slower approvals.
• Inefficient processes. Siloed data leads to manual workarounds, delayed service delivery and increased operational costs.
• Missed revenue opportunities. Cross-selling becomes harder when client data isn’t shared across divisions. Banks miss out on personalized upselling and loyalty-driven growth.
• Regulatory risks. Inconsistent data increases the chance of compliance errors, putting the bank at risk of fines and reputational damage.

The Bottom Line: A Board-Level Priority
The long-term success of any strategic banking initiative hinges on a solid data foundation. As board members evaluate strategic technology plans, key questions to ask include:

• How well does our data strategy align with our business goals?
• Are we making data-driven decisions across divisions?

By holding management accountable for a unified data approach, boards can ensure sustained growth, operational efficiency and a competitive edge.