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Stay ahead, secure, and exceptional: How Data Cloud empowers financial services

Apr 30, 2024 | Admin, Data Integration, Financial Services, Latest News

When cybersecurity risks, compliance regulations, and evolving customer expectations impact your organization’s growth plans, what you don’t know can make all the difference. 

Studies show that less than 50 percent of banking service providers, for example, use their customer data to understand customers and create relevant experiences. Experts also found that only one-third of banks and credit unions collect customer data from their services, such as online portals and mobile apps. 


What is Data Cloud?

Built directly into Salesforce, Data Cloud is a hyperscale data platform that integrates company and customer data. But it’s more than that. 

Salesforce Data Cloud is the first data platform that not only unifies data from across the enterprise but also uses this harmonized data to power the AI and applications that businesses use every day,” said David Schmaier, President and Chief Product Officer at Salesforce. 

Recent Spring ‘24 releases announcing features like Data Cloud Related Lists and Data Cloud Triggered Flows enhance Data Cloud’s capabilities by expanding and simplifying access to customer engagement records stored in Salesforce. 

Whether you’re staying ahead of regulations, fortifying your cyber defenses, or wowing your customers with tailored experiences, let’s discuss three ways Data Cloud has your back every step of the way. 


Regulatory Compliance 

“I so wish our financial firm had more regulations to navigate,” says no one ever. 

Financial institutions aren’t short on regulations, which presents a significant barrier to companies not equipped to monitor these changes. Maintaining evolving rules, ensuring compliance with new and existing laws, and navigating complex regulatory frameworks require substantial resources and expertise. If companies fall short, steep financial penalties, the threat of legal action, or placing licensing or accreditation at risk is something financial services companies can’t afford. 

Data Cloud platforms facilitate real-time data monitoring, analysis, and reporting capabilities, enabling organizations to identify and address compliance issues promptly. Additionally, these solutions often incorporate advanced encryption, access controls, and audit trails to safeguard sensitive information, ensuring compliance with data protection regulations such as GDPR and CCPA. 

Our Simplus Business Transformation Services team can discuss how cloud-based data lakes and analytics tools empower firms to gain deeper insights into regulatory requirements, optimize compliance strategies, and proactively mitigate risks to achieve greater efficiency, agility, and confidence in meeting complex regulatory obligations.


Cybersecurity Risks

As more companies turn to digital services to gather data, the threat of cyber attacks is increasing. Experts estimate that company losses from data breaches have quadrupled since 2017 to $2.5 billion, and indirect losses like reputational damage are substantially higher.

“The financial sector is uniquely exposed to cyber risk,” said experts, adding that research found that attacks on financial firms account for nearly one-fifth of the total, of which banks are the most exposed.

Although gathering customers is essential for innovating services, using a central data source makes a huge difference. By centralizing data storage and management in a secure cloud environment, firms can more effectively consolidate and protect sensitive information. 

Data Cloud platforms often incorporate state-of-the-art encryption, multi-factor authentication, and access control mechanisms to safeguard against unauthorized access and data breaches. These solutions offer continuous monitoring and real-time threat intelligence, enabling organizations to promptly detect and respond to cyber threats. 

Cloud-based data lakes and analytics tools also facilitate proactive risk assessment and vulnerability management, empowering firms to identify and address security weaknesses before they can be exploited. Leveraging Data Cloud technologies gives companies the agility and resilience to combat evolving cyber threats effectively.


Customer Experience and Innovation 

Exceptional customer experiences and staying ahead of technological advancements are imperative for sustainable growth. However, many financial services companies need help to innovate quickly enough to meet changing customer expectations and keep pace with fintech disruptors. 

For example, in a recent Forbes article, marketing expert Sherri Schwartz pointed out that 76 percent of new customers admitted they walked away in the middle of onboarding because the process was too complicated and never used the product or service they signed up for. 

“Institutions need to be aware that onboarding is one of the first impressions they make; the quality of customers’ experience with it will directly impact customer satisfaction and retention,” Schwartz explained. “If the customer cannot make it past the first step without friction, how can they trust their financial institution throughout the rest of the relationship? Financial institutions should provide cohesive, less complicated customer journeys so they know how they’re doing, what’s next and where to quickly find help.”

By centralizing customer data in a secure and scalable cloud environment, firms can gain a comprehensive view of each customer’s financial profile, preferences, and behavior across various channels. 

Firms can anticipate customer needs, identify emerging trends, and proactively offer relevant solutions with a platform that facilitates real-time data analysis and predictive analytics. 

Additionally, cloud-based applications and APIs enable seamless integration with third-party services and fintech innovations, allowing financial institutions to enrich their offerings and deliver innovative experiences. 

Despite significant efforts, a staggering 81 percent of business leaders report struggling with data fragmentation and data silos. This disconnected information hinders crucial tasks like improving the customer experience, even though 80 percent of customers expect better experiences based on the data companies collect.

This holistic understanding enables organizations to deliver tailored products, services, and recommendations that meet individual needs and preferences. 

With the strategic power of centralized data management, advanced security features, and real-time analytics, firms can mitigate risks, ensure compliance, and unlock new opportunities for growth and innovation. With Data Cloud, achieving business objectives becomes manageable and truly transformative.



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