Financial services companies do not consolidate their customer data effectively, which leads to inaccuracies and waste, a new survey from Experian QAS found.
The survey, "Data Quality and the Customer Experience," found that 84% of financial institutions do not have a "single-customer view," or a single place where all their data about each customer can be viewed at once. Typically, financial services companies accumulate customer data through four separate channels, such as a website, call center, mobile banking app and branch.
The survey also registered concern over the accuracy of banks' customer data. Of the 161 financial-services employees who responded to the survey, 91% suspect that some of their institution's customer data is wrong.
And this lax data management hurts the bottom line, with 86% of respondents saying that inaccurate customer data has caused some budget waste over the last year. On average, they estimated that 11% of their budget was wasted due to inaccurate data.
Though nearly all the respondents said their company has a process in place for managing data accuracy, strategies differ. Dedicated back-office software and point-of-capture software are the two most common means of managing data, with over 40% of respondents saying they use these tools. A growing percentage of companies are using software-as-a-service products to manage data quality, Experian said.
The survey was released by Experian QAS, a division of Experian that provides software to improve customer contact-data.