Critical data collection challenges in the financial sector and how best to overcome them.
We’d love to say that data collection in the insurance sector is a smooth, seamless process, but clearly, it isn’t always as simple as we’d like it to be.
In this brief read, we shall review our top three data challenges faced by the financial sector, and show you where and how better solutions are possible.
Problem One: Fragmented data across multiple systems and departments
With businesses and partner organisations using different CRM tools, databases, document management and accounting software to collect data; integrating this information isn’t always simple, especially when the systems don’t share information with between them easily. As a result, customers and sales agents have to spend time keying and entering the same information repeatedly, wasting time, energy and money.
Consider the data sharing involved in a complex insurance proposal, where information must be passed between a broker and multiple insurers. Repeat keying inevitably risks weakening the quality of your data, with a higher chance of the broker providing data containing potentially critical errors. Combine this with the amount of time lost filling forms repeatedly, and you are both increasing cost and time to serve, and potentially introducing data flaws.
To help overcome this issue, you can create bespoke systems that can provide the functionality that individual departments need to collect and manage data in one central location. You will eliminate the need to enter information multiple times and will give your customers/team a smoother user experience.
Designing the right bespoke system can make a massive difference to your business; even existing back-office solutions that have some data collection capability are by no means perfect, especially customer side. With the platform approach to back-office, instead of having a system that fits around your business; you may well find that you have adopted software which you instead have to adapt your business and indeed your customers to work around.
An effective Middleware solution makes it possible for programs to talk to one another and reduce repetition, as all the information you need is centralised into a single source of truth.
- Increase digital interactions with customers to boost data capture and enable the collection of new types of data. You can use customer-generated information to extract business intelligence that can help you to improve turnaround times, customer acquisition, customer retention and risk management while reducing instances of fraud and wastage.
- Create a system that will detect any changes and automatically provide updates to customer records, e.g. changes to name, address, contact numbers and their ilk. Automatic updates are a huge time saver for the business and the customer. They have the added benefit of ensuring data integrity year after year, across every line of business you conduct.
Problem Two: Data managed at product level rather than customer level make it hard to gain insights that can improve customer experience
Customers want you to be knowledgeable about your products and know which are appropriate to and likely to help them; without an effective data strategy, a lack of personalisation and a perceived lack of knowledge of the customer causes disengagement and forces downward pressures on retention.
Using software to collate dispersed customer information can help you to make better marketing, merchandising and risk decisions at the customer level. You’ll have a greater awareness of customer behaviour, interests and history. Likewise, using AI when merchandising, and to answer customer queries online will enable you to direct them correctly maximise client satisfaction.
Problem Three: An over-reliance on legacy back-office systems leads to inefficient infrastructure and workflows that can be costly to change or adapt to new demands and processes.
The biggest problem with the legacy systems that have been deployed throughout the years is that they are often not flexible enough to handle complex process changes without you having to make a significant infrastructure investment. This situation is exacerbated by the constraints imposed by regulatory bodies and modern cybersecurity requirements.
Rather than replacing the whole system and starting from scratch; implementing middleware can help different pieces of software to talk to each other, so there is no need to duplicate information across systems, or indeed organisations.
Middleware is unlike other systems that force you to make your business fit around them, in that it can be developed to work around your people and processes. Properly designed middleware ensures that every facet of your business is covered and catered for, so your time and money are best utilised, and your larger legacy systems can benefit from extended shelf life.
These are vital issues that most in our industry face. By tackling them head-on and harnessing digital tools and systems to improve processes, you can optimise time and cost to serve, minimise risk and offer your customers the attention and service that they deserve.
At Stunn, our team of professionals can help you to create a robust, bespoke system that will ensure that there is never any danger of miscommunication or duplication in your data. Instead, all of your data will collate into one viewable source, whereby you can quickly and efficiently handle customer queries/claims and fill in any forms without delay.
For more information on how to harness middleware, AI and digital tools, contact us today.