The notion that “bigger is better” has even translated into the world of data. Too often, the perception is that big data alone provides all the answers community financial institutions (FIs) need when it comes to their business and their consumers. However, small data is equally important when it comes to delivering real-time insights.
Small data serves as the foundation for big data. It contains the real information—the traces of consumer behavior left behind by actions taken every second of every day. Together, big data and small data can help community FIs deliver superior consumer experiences. Below is an excerpt from my recent white paper on this topic:
“Credit unions and community banks are in the enviable position of having access to consumer behavior indicators in real time. By looking first at user-level detail, then enhancing the results with trend data from larger groups, a community financial institution may get closer to achieving truly customized, individual services.
So where does a credit union or community bank start? Core processing systems can be extremely rich repositories of consumer data, so it makes sense to begin by investigating whether the organization’s existing system connects real-time information with the people who most need it. However, a core processing system is only the starting point, as there are likely many other sources of small, real-time data within the credit union or community bank.
An organization’s next step is to assemble each of its teams to determine how various strategies across the financial institution, from growth to engagement, can benefit from small data.” Watch for my next white paper about building business intelligence teams from the ground up.
