In our last paper we discussed why one of the most difficult decisions for a bank considering a new software solution is whether it should build the solution using in-house IT resources or buy market-ready products.
In an ideal world, banks would base decisions on the key criteria of cost, efficiency and productivity, delivered through the lens of specialised capital markets expertise. Central to each of these considerations is ROI – a true barometer of the value and success a business ultimately derives from the investment they make in a certain piece of technology.
When it comes to data analytics software, banks tend to measure ROI by looking at client interactions and execution – in other words, how their traders and salespeople have been able to harness the new information at their disposal to make more calls to clients, spend more time on each call, and execute more business. These client relationships are the backbone of any FICC business, and levelling up call volumes and times typically results in levelling up a bank’s bottom line and market share.
Many banks today struggle to provide their traders with real-time pricing information, and salespeople often have delayed access to data and rely on spreadsheets that can take as much as 80% of their time to generate and populate. So, against this backdrop, how does data analytics deliver business value and immediate ROI?