Global Banking Outlook with Steven Lewis: Technology and banking

| April 12, 2017

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Steven Lewis discusses the best ways to leverage technology.

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Bryant Park Capital

Bryant Park Capital, LLC (“BPC”) is an investment bank providing M&A and corporate finance advisory services to emerging growth and middle market public and private companies. BPC is comprised of seasoned M&A and corporate finance professionals from top tier investment banks, senior executives of operating companies and private equity investors. BPC excels in providing M&A advisory and capital raising services for complex deal structures as well as providing high level access to top tier private equity, hedge fund, venture capital and banking institutions and our professionals have completed over 320 assignments representing an aggregate transaction value of over $100 billion.

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Effective Use of Intent Data for Financial Institutions

Article | June 30, 2021

The world began its course to become a digital open book after the internet came into existence. With almost everything available for purchase, the internet has brought the world to the buyer's doorstep. With the purchase, comes the data, and with effective use of the data collected within a period, any industry can speculate the buyer’s journey and take compelling steps to attract the buyer. Looking at the facts, around 93% of purchases start with internet research. Intent data is the name of the collection of the behavioral signals that a user shows while purchasing anything. This data helps businesses be available at the right time and the right place to pitch their product to the customer who is already interested in buying what they are selling. Businesses can analyze these signals, accurately understand where the prospect is in its buying journey and can give a solution to the problem. With intent data, even financial institutions can up their game and generate greater ROI while accurately predicting the buyer’s position in its purchase journey, and provide the best value to attract him/her. With over terabytes of intent data available for use, financial institutions can use it to flourish in this pandemic hit economy, using fewer resources and marketing their services to ready to buy consumers. Since its inception, intent data is on the top priority of every marketer’s to-do list, with its usage in advertising campaigns, outreach campaigns, content creation, SEO, etc. This article covers how financial institutions can use intent data to their advantage, provide value to the user, and draw massive attention to their platform to reach their ultimate goal and generate more revenue. Before going further, let’s understand the basic concept of intent data and its type that comes into the use for financial institutions. WHAT IS INTENT DATA? Intent data refers to collecting information on online behavioral insights of internet users or prospects, allowing you to better focus on the audience that has more chances of buying your products or services. To put it simply, intent data will help you display your product or services to those already searching for it. For example, your financial department is facing challenges to keep the accounting on track, checking the organization’s financial status, etc. While, you look for the solutions online, you Google “best financial tool for in-house accounting.” Out of millions of search results, your search concludes with some of the top tools like Robotic Press Automation (RPA) in accounting kept aside. Now, your search would be more specific and according to the selected tools. Now, for comparing and selecting the best tools, you may Google- “How RPA keeps track on accounting?” “What is the ROI of RPA in accounting for small enterprises?” “What is the role of RPA in accounting?” And so on. Notice how your search query got specified after some informative searches. Imagine having the power of intent data of your customers and satisfying them with your content. Intent data helps you nurture a highly targeted audience and eventually convert them into your clients. When prospects face challenges, they search for the solution online. While providing the solution for any specific query, websites ask the prospects to accept their cookies. These cookies monitor their intent of searching and this data is then pushed to the marketers to mold their campaigns suited better for these targeted customers. Let’s look at how financial institutions can focus their campaigns on highly targeted prospects with types of intent data. TYPES/SOURCES OF INTENT DATA The types of intent data divide the vast information of intent into three types - first party, second party, and third party. First-party The data you now gather on known contacts and anonymous visitors is first-party intent data. It can also involve prospective website connections, newsletters, emails, and social media. You can use the first-party intent data to segment messages, build workflows, and get more leads. You can assist your marketing and sales team in determining how to approach and convert a prospect. Second-party Second-party data refers to data collected by another company. It is like gaining insights into your prospects from the shops they have visited earlier. The second-party intent data includes review websites and publishing networks. And all this information is voluntarily provided by the user. Sometimes, the user may also share the contact details and their business email id. Third-party While some systems only track a network of pages, third-party intent data is gathered from all across the web. In several cases, this intent data is extracted using one of 3 techniques: reverse IP lookup, Bidstream data from ad networks and widgets, and media exchange/publishing participants. Third-party intent data can show the user’s intent that is relevant to your campaign. STEPS TO BUILD GREATER ROI FROM INTENT DATA How can a financial institution decide whether a particular lead is worth its investment? Answer: By lead qualification. By segregating each lead into three types, you can decide whether the prospect is an active buyer or someone who wants some information over the web. It allows the marketing team to use their time efficiently and target the leads which are likely to convert. For significant ROI from intent data, financial institutions should gather intent data and segregate it into three types of B2B data- Fit data, Intent data, and Opportunity data. Fit data Fit data shows how well your product or services fit the need of the customers. Imagine if a financial institution provides loans on a low credit score, and a user searches for loans on a low credit score, we can call this collection of information as fit data. With this information, you can efficiently use your time and investment to target a specific prospect. This information collection may include the prospect’s age, sex, job level, job function, and the residing location. Fit data is generally the data that won’t change quickly. It may give you a right fit of prospects for your campaign but cannot tell you the right time or context of search intent. Opportunity data Opportunity data is event-based data on particular prospects. Suppose, you are a financial institution providing a car loan on reduced interest rates, and you come to know that a specific company is crediting bonus salary to its employees. If you market your car loan services to their employees, you can have more leads as you know they have a bonus salary in their account. This is called an opportunity data, which sometimes is also referred to as data scoops that give you information about favorable conditions for sale. As the name suggests, the opportunity data gives you the data of a perfect opportunity to market your services to targeted prospects. Intent data Intent data indicates that the time has come to engage with folks who actively express a desire to acquire a solution. When the intent data is integrated with other signals and a solid fit, the chances of conversion increase dramatically. It's helpful to know when there's movement at a company, but if you don't know who to connect with and don't have a phone number or email address for them, it's only informative. You need actionable data along with intent data to perform a perfect marketing campaign. COMMON USE OF INTENT DATA A Segment to sort out active prospects With the use of intent data, B2B marketers find companies actively looking for products or services they are serving. Intent data solutions provide segmentation tools that you can utilize to sort out active prospects that fit perfectly with your services. This segmentation tool can help you filter your prospect with an unlimited combination of the type of company, contact details, location, industry, and technology they use. Intent data for Account-Based Marketing Leading B2B marketers use intent data to drive their ABM campaigns as it naturally fits these campaigns. ABM and intent data are the two sides of the same coin, as ABM delivers results through specific account’s interest and intent data provides timely opportunities to initiate the contact. Integrating both helps you elevate your marketing reach. Intent Data for marketing campaign Optimization Integrated marketing strategies help financial institutions because marketers can pump useful insights to drive effective and relevant demands. The sales team of financial institutions get into the conversation with the buyer while having more information on their pain points and what solutions they are looking for, giving them an upper hand in exchange. SIGNIFICANT FINANCIAL MARKETING TREND Insight-driven marketing With the help of effective machine learning and artificial intelligence, insight-driven marketing helps financial institutions to offer financial assistance to the right fit of customers. Marketers can further collect the right type of customers that fits the services and not the other way around. Prospects with other financial needs can be routed to more appropriate services you offer. Awareness of the customer journey Intent data helps financial institutions optimize and understand the customer journey and correctly map customer interactions. It enables to influence the end-to-end experience of the customer. By having a perfect understanding of where the customer stands in the customer journey, financial institutions can market their services according to their needs. Increased personalization Intent data allows the marketers to look further into the minds of their prospects. It enables them to read the customers as an open book while segmenting them on their thought process. For example, which customer is more savings-oriented? Which one is planning for their retirement? With these insights, marketers can match the right customers to their services with the relevant type of marketing to compel the audience. TYPES OF MARKETING SIGNAL AVAILABLE Signals are the hints prospects resonate, showing financial institutions they are ready for being potential customers. These signals are everyday actions like Googling stuff they need orLike hard searching online, clicking on financial institution ads, applying for any loans, and paying off debts. Financial institutions can use these signals to run highly specific marketing campaigns. Let’s look into these marketing signals further. Most marketing signal falls into three major categories, such as: Behavior-based The behavior-based marketing signal includes hard searching like credit inquiries and online searches that signal intent to look for services. It may also include some minor changes that indicate future requirements like a change of residence or buying intent of large purchases like automobiles and real estate. Event-based Event-based marketing signals include automobile lease expiring, mortgage rate settings, or child passing the high school. These are the hints that indicate the prospect is going to have a requirement for your services. These signs show that the customer is about to have a significant financial shift, and financial institutions can use this opportunity to market their services. Predictive Predictive signals are passive hints that prospects show. It may not be as obvious as behavior-based, but it can set a boundary to your targeted customers. Some of the predictive marketing signals could have data of savings, debit consolidation, and mortgage refining. Predictive marketing signal can give low fidelity and can assure you the maximum coverage of your marketing campaign. CONCLUSION Using signals to attract and retain consumers is an effective component of a well-thought-out marketing strategy. Moving to a signals-based strategy, on the other hand, does not have to be a huge overhaul of your current procedures. Continue to use your tried-and-true strategy, but experiment with new ways of analyzing and responding to signals. Worried about how much money you'll need to set aside to fund the signal-based marketing strategies? You can assess the ROI of the marketing strategy before expanding your program if you start with a scalable service with no commitments. Traditional signals continue to be relevant and form the basis for customer-focused marketing. Combining them with potentially powerful signals that indicate purchase intent will enable proactive communication and elevate financial marketing initiatives to the next level.

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Digital Transformation Of Finance Team - Get Better Agility While Doing Business In Tough Times

Article | September 14, 2021

Digital transformation had a huge impact on every sector, and this includes finance. Digital disruption in finance can be defined as an event where new technologies replace traditional methods for financial transactions. This article will discuss how technology for finance has changed over time, why it's vital to stay current with digital trends, and what you need to do to make your company ready for the future! Make plans for the coming age of Digital Transformation The finance team has traditionally used tools like spreadsheets, reports, and presentations to managing its processes. However, digital disruption in finance is creating new challenges for the finance department because of these changes - they need to learn how to use technology effectively or risk getting left behind! Here are some examples demonstrating why digital transformation of your company's financial processes can be beneficial. Digital transformation gives the finance team access to better systems to help them do their jobs more efficiently and effectively. Digital transformation gives the finance team access to better tools that will allow them to be more agile and deliver new services for their clients. Digital transformation saves money for the company because new technology is cheaper than old technology like spreadsheets and presentations. As such, if you want your company ready for the future, make sure your finance department is aware of digital trends and knows how it can integrate new technology into its workflows. Prepare for a transaction revolution as automation and blockchain infiltrate further into the financial process: While financial institutions have been working on transformation plans for many years, the recent cryptocurrency and blockchain revolution indicates that things are moving faster than ever before. As a result, banks are starting to understand that they need to be open to new technologies and ways of working to stay relevant in their industries and attract new clients. Financial institutions need to brainstorm new ideas and innovative ways of working that will allow them to be relevant in today's market while at the same time applying technology in ways that facilitate faster and safer processes. Financial Institution's role in Digital Transformation: Now that most finance processes are automated, the finance industry will provide more business insights and services. Of course, success is not a certainty, but digital marketing for financial services can get more focused and accurate. In essence, FinTech technology will improve financial management and help production. It can do this by rethinking procedures, breaking formats (finance is a chaotic environment), streamlining reporting, and endorsing transactions with a better data set. As a result, businesses may find themselves better placed to make long-term decisions and do not require immediate cash flows. The key question is whether financial technology can deliver on these promises in a way that provides real benefits for customers and shareholders while being price-insensitive enough to be affordable for all. The way for financial teams to be agile: Although digital transformation is a competency within finance, most bankers still focus on software development and hopping from platform to platform. One of the biggest problems in overcoming this difficulty is the lack of a common language. An effective digital transformation strategy requires the sharing of data - including between departments. Sharing information enables agility because it allows each team to understand their strengths and weaknesses more clearly. It also enables cross-functional teams that can reach out to business partners outside their core business functions when necessary or to solve problems outside their domain of specialty. The transformation can also help in creating compelling promotions and creating persuasive advertisements for your financial services. "As workplaces start to open, a hybrid model—seems to be a new norm that provides flexibility for people to operate both from their homes and offices, as we emerge out of the pandemic period." -Vishal Srivastava, Vice President (Model Validation) at Citi A more adaptable future in digital transformation for FinTech Several banks and financial institutions are making it a point to associate themselves with technological innovation. Recent data shows that nearly half of financial institutions worldwide have made some sort of digital transformation in the past five years – from transaction processing to customer relationship management. Increasingly, these institutions are looking to the future and thinking about using technology to transform how they do business. Digital transformation of finance is just one of the many buzzwords we're hearing from financial institutions right now. Financial institutions need to stay connected and relevant in an increasingly competitive marketplace by designing financial products and services that meet their changing demands. Cloud computing for a more agile future What's more, the shift means businesses can scale faster using the cloud--perhaps even more effectively--than before. The momentum behind the online collaboration, instant messaging, and Web browsing has only accelerated in the past few years -- threatening to upend the very foundations on which many large companies have built their business models. This shift means banks will need to find new ways to stay competitive and fast. Tech giants such as Amazon, Microsoft, and Google make significant inroads with cloud technology into innovative services and products into the bank space. We'll see if they also can help shake up the way work gets done -- either here or in offices around the world, as migrating infrastructure to the cloud enhances access, flexibility, and scalability for both FinTechs and banking giants. Conclusion The current financial crisis has led to a re-examination of traditional finance models and ways of working. One area that has gained particular attention is the digital transformation of finance teams. The potential impact of digital transformation on finance is intense. If well-timed, it may help finance organizations attract and retain talented employees while reducing operating costs and enhancing returns on investment in core operations. FAQs: What are the four main areas of digital transformation? Digital transformation is a broad term that generally refers to an increase in efficiency across many business functions using technologies such as software applications, data analysis techniques, networks, and infrastructure. To achieve digital transformation, the organization needs to rethink many core processes while integrating new technologies. In addition, there are challenges associated with changing from an existing model and overcoming internal resistance. What is the future of finance? The future of finance is in changing the way companies raise money for new ventures and how financiers themselves manage their portfolios. Fundamental changes include using technology that helps investors access data and choose more suitable investments, better deals, and structures for companies that now seek to raise money from multiple sources rather than just raising an individual round. What are the top technologies for finance? Technologies used in the financial services sector have become so integrated that it is difficult to understand their impact on a business or industry. Nevertheless, here are some of the emerging technologies that are in use right now: Hybrid Cloud Servers Blockchain Artificial Intelligence Robotic Process Automation Data Analytics Cybersecurity { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "What are the four main areas of digital transformation?", "acceptedAnswer": { "@type": "Answer", "text": "Digital transformation is a broad term that generally refers to an increase in efficiency across many business functions using technologies such as software applications, data analysis techniques, networks, and infrastructure. To achieve digital transformation, the organization needs to rethink many core processes while integrating new technologies. In addition, there are challenges associated with changing from an existing model and overcoming internal resistance" } },{ "@type": "Question", "name": "What is the future of finance?", "acceptedAnswer": { "@type": "Answer", "text": "The future of finance is in changing the way companies raise money for new ventures and how financiers themselves manage their portfolios. Fundamental changes include using technology that helps investors access data and choose more suitable investments, better deals, and structures for companies that now seek to raise money from multiple sources rather than just raising an individual round." } },{ "@type": "Question", "name": "What are the top technologies for finance?", "acceptedAnswer": { "@type": "Answer", "text": "Technologies used in the financial services sector have become so integrated that it is difficult to understand their impact on a business or industry. Nevertheless, here are some of the emerging technologies that are in use right now: Hybrid Cloud Servers Blockchain Artificial Intelligence Robotic Process Automation Data Analytics Cybersecurity" } }] }

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FINANCIAL MANAGEMENT

The Asian Financial Services Industry Needs a Customer Data Platform

Article | December 10, 2020

Customers in the financial services industry want personalized experiences. They, in fact, expect and demand them from their service providers. They prefer to stay loyal to a company as long as they receive this special treatment. As a result, personalization has become the number one priority for marketers in the industry today. They are waking up to the realization that delivering personalized experiences highly depend on understanding customer data.marke Very few companies have the means to understand this data and use it to enrich the customer experience. The technology that has been recently making waves in every industry is known as the Customer Data Platform (CDP). A CDP is a packaged SaaS (software-as-a-service) product that is designed to build a unified customer database for an organization. Implementing a CDP can help achieve consistent customer engagement, increased loyalty, and higher sales. David Raab, CDP evangelist and Founder of the CDP Institute, was invited as a chief guest at the Customer Data Summit 2018 event organized by Lemnisk. David is a widely recognized thought leader in marketing technology and analytics. He was one of the first people to recognize that digital marketing systems were not just proliferating but also the data that these systems were throwing up were getting grouped into silos, making it really hard for marketers to understand customers holistically. David also realized that there was a tremendous opportunity if he could bring these disparate systems together. Around this insight, David coined the term CDP and founded his institute in 2016. The CDP Institute’s work has been seminal in helping marketers understand the need for a CDP and the ways that they can derive value from it. David’s thought-leadership session imparted the following key insights: The most challenging barrier to Marketing Automation success is data integration between the various marketing systems of an organization. Financial marketers in Asia face the same challenges as their peers elsewhere, which include unifying customer data, providing superior customer experience, working within compliance constraints, and finding the budget to pay for solutions. The CDP industry has seen a good growth rate of around 73% over the last 12 months. Two-thirds of the growth is attributed to new vendors and the remaining to existing vendors. The adoption rate has been high for B2C marketers as their businesses depend highly on user engagement and digital conversions. Companies that opt for a CDP prefer to have a complete packaged solution that includes the core CDP functionality along with analytics and engagement. A CDP works well when all marketing systems are interconnected. One interesting observation is that one-third of CDP users lack an integrated technology stack. Companies that claim to have a CDP do not have this system integration and, therefore, do not fall under the CDP-classified vendors. Things such as churn prediction and predictive modeling are a set of classic algorithms that thrive on good data. Artificial Intelligence (AI) is totally data-driven and works well with data that is highly detailed. A CDP can play a major role in developing custom algorithms and advanced intelligent systems such as AI. One of the things that it can do is create a standardized variable or model score and make that shareable to all systems that it connects to. Of its various capabilities, a CDP also enables cross-device personalization by associating each device with the customer’s master ID when they log in. The master ID is used to build a unified customer profile with all device data. The right message for each master ID is selected and shared with all devices. The unified and complete customer profiles help financial marketers in selecting the right message and deliver a consistent experience across all devices. It is still early days for a CDP in Asia. Many organizations are still at the stage of learning for themselves why options such as DMP (Data Management Platforms), Enterprise Data Warehouses, and marketing clouds won’t solve the problem that a CDP addresses. The core technologies used in Asian financial institutions can support any level of marketing sophistication that their users are ready to deploy. The early CDP adopters are touted to have an advantage over others in the industry.

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Applied Data Science in Fintech

Article | February 28, 2020

Under the supervision of Dr. Mario Gillrich and Maria Pelli, this course explores how new entrants in banking and finance are leveraging new technologies and methodologies to help traditional banks, their corporate clients and consumers use data and algorithms to better manage their financial operations and processes.

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Bryant Park Capital

Bryant Park Capital, LLC (“BPC”) is an investment bank providing M&A and corporate finance advisory services to emerging growth and middle market public and private companies. BPC is comprised of seasoned M&A and corporate finance professionals from top tier investment banks, senior executives of operating companies and private equity investors. BPC excels in providing M&A advisory and capital raising services for complex deal structures as well as providing high level access to top tier private equity, hedge fund, venture capital and banking institutions and our professionals have completed over 320 assignments representing an aggregate transaction value of over $100 billion.

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