by Angela Guess
Jean-Michel Franco has shared his insights regarding how master data management promotes valuable customer data integration in financial institutions and insurance companies. For example, “Self-service applications made available to customers (e-banking or mobile banking, online insurance sales, etc.) usually have a satisfactory service level when it comes to accounts and transaction management. But customers have higher expectations, e.g., relevant recommendations to help them choose the right products or manage their personal budget.”
Franco adds, “A 360° customer view, based on the products the customer has already bought (his consumption profile), is a must. If need be, an intermediary will act between the institution and its customers and deliver the expected personalized service, thereby increasing additional sales of adapted offerings and collecting a loyal customer base out of existing legacy customers ‘belonging’ to traditional banks and insurance institutions. This can be seen in other sectors like the hotel industry and even some banking and insurance services.”
In another example, Franco continues, “Risk management applications are used to optimize allocation of equity capital to cover credit risks. But insufficient data quality control can affect the banking group by resulting in the allocation of more capital equity than required to cover a given customer’s credit risk, maybe because that customer appears several times in the database or because some missing data led to inaccurate risk assessment.”
