April 25 by Cory Haynes
Recently, knowing your data (KYD) has been all the rage. Mark Zuckerberg, CEO of Facebook testified to both houses of Congress a few weeks ago. To discuss, on the record, the trial and tribulations of Facebook from racial inequality in tech leadership to “renting customer data” to 3rd party vendors like Cambridge Analytica to allowing their platform to be a hotbed for Russian propaganda. At the core was the data that users (you and I) freely and effusively “give” to Facebook (Google, Twitter, etc.) in the form of pictures, videos, comments, “likes”, and so on, in exchange for free, user-friendly platforms for sharing and connecting. The fundamental question that remains unanswered is: What are firms like Facebook doing with our data beside selling ads? Based on my bespoke data profile, my vacation pictures from Bali, with me hiking trails in cargo shorts, and feeding wild monkeys, my Facebook feed will surely be filled with ads from REI and a video ads from my local zoo. But is that it?
Protecting the New Gold
I’m not trying to be comical, but we know our data is the new gold, as argued by the Economist article: The world’s most valuable resource is no longer oil, but data (May 6, 2017 edition). Europe’s General Data Protection Regulation (GDPR). The primary objective of the GDPR is to give citizens back control of their personal data. Once GDPR takes effect it will harmonize previous and other data protection regulations throughout the EU. Come May 25th, individuals will determine who has access and rights to their data and must opt in to engage. After the Facebook hearings, some say it’s a foregone conclusion that similar regulations will soon be introduced in the US.
Assuming some customers opt-in, companies need to think like fiduciaries, and act in the best interest of their customers’ (data) without compromising it with nefarious actors or activities. The Apttus Middle Office Platform™ empowers financial services companies, like Insurers, Asset Managers, and Commercial Banks to unleash the most powerful assets… pricing and relationship data. The CRM stores the prospect and customer relationship profile and activity that can be married to the pricing algorithms to offer more bespoke and competitive offers and pricing leveraging the unique data portrait of each customer. Building a true 360˚ view of the customer, tied to their behavioral and demographic data, that enables commercial banks to elevate their offers by packaging loans, additional products and services. This enables banks to create the best offer first, using machine learning to better refine the offer using pattern detection and success metrics, instead of utilizing a “next best offer” approach in client discussions.
Data: a High Value Asset
Data becomes a value-added tool for both the customer and the business. The same data can be woven into the fabric of the digital experience beyond the CRM. Imagine everywhere there are digital properties of the bank, the prospect or customers see subtle messages, tweets, texts and visuals that act as reminders or reassurances about your brand and the value it brings to ensure you retain a lifetime customer, not just transaction. Data, the new gold, is filled with both opportunity and malevolence. In these futuristic digital times, the tested and tried Golden Rule still shines brightly… “Do unto others as you would have them do unto you.” That’s why its golden.
Next month, we will talk about KYC (Know Your Customer) and how it relates to KYD (Know Your Data).