Recently, I had the opportunity to attend the nSight Conference in Charlotte, hosted by global lending platform and Validis partner nCino. The event brought together 1,800 delegates from around the world, fostering a sense of collaborative energy as we explored the future of the financial services industry. Our discussions centered around leveraging technology, harnessing the power of data, and ultimately delivering tangible benefits to banking customers.
During the conference, Pierre Naude, Chairman and CEO of nCino and Anthony Morris Chief Transformation Officer, succinctly captured the essence of our collective quest for success when they stated, “The future is about intelligence…and intelligence needs data, lots of data” and “Whoever has the best data – organized and standardized, wins.”
But what exactly constitutes the “best data”?
To me, it’s straightforward – the best data is real-time, live data that effectively serves both customers and lenders. This sentiment is echoed by the Harvard Business Review Analytic Services, which reports that 58% of global business leaders have witnessed significant improvements in customer retention through the use of real-time data analytics.
Looking ahead, the International Data Corporation predicts that by 2025, each connected individual worldwide will engage in at least one data interaction every 18 seconds. This forecast underscores the growing imperative for businesses to tap into this extraordinary data resource in real-time. Doing so allows companies to enhance customer experiences, bolster business agility, improve marketing performance, and increase operational efficiency.
In the realm of banking, access to live data has the power to transform the industry. Banks that enable customers to share their management accounts in real-time gain access to up-to-the-minute data, empowering them to make dramatically improved loan decisions. Traditional reliance on tax returns or historic financial data is no longer sufficient. In fact, relying on such antiquated information does a disservice to customers and will prove to be an unsustainable business practice for lenders.
The use of live, real-time data can undoubtedly facilitate better decision-making for banks, opening opportunities for customers to demonstrate their affordability.
Furthermore, by providing customers with a technology platform to directly share their financial accounting data with lenders, financial institutions can streamline their data processing, saving up to 75% of their time. This also relieves customers from the tedious task of chasing paperwork, scanning documents, and sending PDFs.
The benefits extend beyond data processing efficiency. Relationship Managers, who have shouldered a considerable portion of the data processing burden, can now reclaim the joys of banking. They can focus on meaningful interactions with customers, nurturing relationships, and truly understanding customers and their businesses. This shift provides an opportunity to redefine “relationship” banking and deliver on its promise.
While the nSight conference explored the future of the financial services industry, it’s important to note that some aspects of that future have already arrived – the future is now! Right now, we have customers who frequently use the Validis platform to share data with their banks. In receivables finance and asset-based lending for instance, we have businesses refreshing data every day. This allows lenders to see the invoices generated that day to provide a real-time credit limit. For these business customers, this could be the difference between seizing a new growth opportunity or missing out.
This example exemplifies the power of the “best” data, creating a win-win situation for lenders and customers alike. As we continue to embrace real-time data and its potential, we move closer to a future where the financial services industry thrives on accurate, up-to-the-minute information, delivering unparalleled value to its stakeholders.
