‘More than the new oil’: Conclusions from Tearsheet’s DataDay Conference
- The pandemic has shifted activity toward digital channels, amplifying the need for safe and secure data sharing between banks and fintechs.
- Holding data is no longer a differentiator; institutions that thrive will make use of that data to build ongoing customer relationships.
We are moving to an era where banks, fintech startups and retailers are racing to deliver the most relevant products and services, based on data.
The coronavirus pandemic has driven digital adoption and added pressure on financial companies to support customers throughout their product journeys. Meanwhile, the user experiences of Amazon, Google and other big tech players are driving new customer expectations. As a result, banks and fintech startups are using data to guide customers during product discovery and purchase stages, with the goal of building enduring relationships with them.
As banks transform from physical money vaults to digital information repositories, it’s often said that data is the new oil. But sitting on a trove of data alone isn’t enough: Success depends on growing business models, governance frameworks and partnerships to ensure that customers are well served. As practitioners at Tearsheet’s DataDay virtual conference earlier this month concluded, unlocking data’s potential means delivering value through personalized products and services.
“There’s this notion that the data that the banks sit on is gold, or it’s oil, and they’ve just got to figure out how to drill it or mine it,” said Adam Carson, West Coast fintech lead at Point72 Ventures. “I don’t see it; I think there’s a big difference between having data and building a data business.”
At DataDay, discussions among bankers, startups, venture capitalists, data aggregators and nonprofits centered on the building blocks for success in a post-pandemic business environment.
Among the conclusions:
Put the customer at the center of your business model.
Whether it’s data sharing, using data to create new products, risk mitigation or permission management, consumers are at the center and will continue to be at the center and as we start to see this industry evolve.
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