When you are focused on improving daily efficiency and increasing profit margins, it’s easy for something like organizing and storing your data to become an afterthought. But cataloging your data and storing it in an easily accessible platform can ultimately help you achieve your businesses goals.
In 2020, it is no secret that data matters. Here’s why your financial institution should consider investing in an enterprise data warehouse (EDW).
Life Without an Enterprise Data Warehouse
Before we explore the benefits of an enterprise data warehouse, it is helpful to acknowledge how inefficient internal processes can be without one.
“From a bottom-line perspective, the operational costs are detrimental,” Alex Fan, Vice President of Financial Services at Saxony Partners said.
“You’ve got people hunting and pecking for their data and manually creating reports. It introduces inevitable human error and kills efficiency. You’ll be both slower and more inaccurate. You also have to consider lost opportunity costs because you could be better using the time to serve customers or market to customers.”
The reality is that pulling together data from a variety of disparate sources definitely doesn’t improve morale amongst employees or provide any safeguards for human errors.
“You have widespread inconsistencies: different people completing their reports different ways,” Fan said. “Two people could be reporting on the same metric using different criteria, which skews the information for businesses reviews.”
Benefits of an Enterprise Data Warehouse
On the other hand, investing in an enterprise data warehouse can transform your internal business processes into a productivity machine. Here are the key EDW advantages to keep in mind.
With an EDW, gone are the days of chasing down siloed data scattered across your company. You can instantly access or update any information you need from one centralized location.
For companies with an extremely high volume of data, taking on a project to integrate all of it might seem like an overwhelming cost or time commitment. But cleaning and cataloging all of your data can be an ongoing process, Saxony’s Senior Manager of Financial Services Michael Martin explained.
“You can catalog your data in stages by focusing on specific domain or pain point at a time,” Martin said. “You can work through each domain systematically until all of your data is within the warehouse. This saves lots of money and time.”
When you use excel to store all of your data, there is an enormous risk that it will become contaminated with inaccuracies. This “dirty data” can start with a simple mistake, like an employee downloading a file and forgetting to reupload it after changes are made. But dirty data means inaccurate reporting, which can eventually spell legal trouble. There are both operational and reputational risks at play.
When everyone on your team is working from an enterprise data warehouse, you never have to wonder if you are accessing the latest and most accurate information.
Relying on incompatible systems and software and excusing inevitable human error makes reporting a mess. It also typically means hiring more employees to combat the time-consuming nature of hunting and searching.
An EDW can automate your reporting so that you can feel more confident in its accuracy and reduce the time associated with it simultaneously.
Once your enterprise data warehouse acts as a single source of truth for your data, you can scale your businesses without having to increase your headcount. Employees who can spend less time on data entry and reporting can be more productive and fulfilled in their roles.
When productivity increases and headcount remains stable, profit is magnified.
How Saxony Partners Can Empower You Towards Your Data Goals
Even if you are sold on the concept of an EDW, you might be skeptical about finding the right consultants for the job. Our team at Saxony Partners is tailor-made for data consulting work in the financial services industry because our employees have, collectively, decades of experience in that field.
“Our team members all come from a financial services industry background,” Martin said. “We don’t have to waste any time educating ourselves on the universal components of this business: we bring that to the table from day one.
“We have years of experience creating enterprise data warehouses for a wide variety of companies. We have been through the process enough times to know what works and what doesn’t. We have a keen eye for how to do things quickly, accurately, and cost-effectively. That’s the value we bring to our clients.”
Additionally, we understand that financial service institutions want to see immediate value to our work. We won’t waste your time on services you don’t need, and we will always prioritize your unique business pain points over trendy technology.
“Our ‘business first, technology second’ mantra sets us apart in the industry,” Fan said. “The way we partner is different: we provide insights into the best practices for implementation based on our experience.
“It’s typical for firms to continuously charge clients for more and more services regardless of whether or not they add value. We want to help companies make sure every dollar they spend is worth it.”
An enterprise data warehouse can streamline your reporting, safeguard sensitive information, and make a dramatic impact on your profits. Call Saxony Partners today to learn more about the best data solutions for your company.