Data, data, data—it seems like that’s all anyone talks about these days. But when it comes to financial institutions, data really is where the action is. Banks hold massive amounts of transactional data, making it one of their most valuable assets. The challenge, though, is that this data is scattered—spread across vendors, core systems, digital banking platforms, internal databases, and countless other transactional tools banks rely on to run their business effectively.
The issue isn’t a lack of data—it’s that the data is all over the place. Even for community banks, which are smaller than regional and money center institutions, the average tech stack often includes 20-25 key vendors. And that’s just to support basic financial products.
This complex web typically includes a core system where most loan and deposit data resides and a digital banking provider since most community banks don’t build their own web or mobile platforms. With so many systems in play, critical information about loans, deposits, transactions, mortgages, treasury services, and more is siloed across the organization.
When data is fragmented across multiple systems, it becomes difficult to use it meaningfully. If a bank wants to get a comprehensive view of a customer’s relationship—spanning consumer accounts, commercial services, treasury, and mortgages—there’s often no easy way to pull that information together.
This lack of visibility makes even basic tasks unnecessarily complex. Imagine how frustrating it is for both the bank and the customer when the same data has to be entered multiple times across different platforms. Disjointed data creates friction that holds back progress, whether you’re trying to improve the customer experience, streamline operations, or launch a data-driven marketing campaign.
When it comes to solving the scattered data problem, there are a few key lessons every bank should keep in mind:
This sounds simple but can be difficult in practice. Developing a successful data strategy begins with defining the desired outcomes. What insights matter most to your stakeholders? Whether you want a clearer picture of customer relationships, risk analysis, or operational efficiency, knowing your goals upfront helps keep the strategy focused and effective.
Take stock of what you already have before searching for external solutions. Start by cataloging internal data sources—looking at each line of business, key vendors, and the databases already in use. While external data sources can be powerful, focusing on internal data first helps you avoid unnecessary complexity early on.
Much of the data banks manage is unstructured, especially regarding database hierarchies. Investing the time to understand how to structure and standardize your data is critical—whether for basic reporting or more advanced use cases like AI-driven insights.
Fragmented data leads to fragmented results. Establishing a centralized data strategy, ideally supported by a well-designed API infrastructure, allows banks to break down data silos and create a single source of truth across the organization.
Based on personal experience, here are a few practical steps to begin addressing the scattered data challenge:
Don’t let the size of the challenge hold you back. Begin with a focused project that’s easy to manage and can deliver quick wins. Building “data muscle memory” as a team creates momentum and confidence.
Focus on a project where data insights can drive meaningful results, like revenue growth, cost reduction, or improving a process tied to a C-suite priority. The clearer the impact, the easier it will be to gain buy-in and resources for future projects.
Developing a comprehensive data strategy isn’t cheap. But that doesn’t mean you need to invest in complex automation tools right away. Starting with a manual process and refining it over time can help control costs while keeping progress moving.
Data is undeniably one of the bank's most powerful assets—but only when it’s properly managed, structured, and centralized. By creating a thoughtful data strategy, starting small, and focusing on impactful wins, banks can break down silos and turn raw data into actionable insights that drive better decisions, stronger relationships, and real growth.
The opportunity is there—it’s just a matter of harnessing it.
Finov8r is a leading embedded advisory consultancy that supports banks, fintechs, and corporations. Bridging finance and technology, Finov8r provides tailored solutions that foster profitable growth, simplify technology complexities, and deliver 5x ROI through fintech innovations. With hands-on advisory, Finov8r works within teams to achieve long-term results, unlock new revenue streams, and modernize operations. For more information, visit finov8r.com and follow on LinkedIn.
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