In the last few blog posts we have discussed how cloud software has given community banks and credit unions increased accessibility to data. However, there are steps financial institutions need to take to ensure they are getting the highest quality of data out of their software through efficient processes.
The Importance of Process
Ask yourself, how do you pull data from your software? Who oversees the data collection process? How often is it pulled? Who reviews the data for quality and accuracy?
Process is important because it keeps things moving in an efficient manner, but it also creates day-to-day habits for your staff, reinforces strategy, and provides the information needed to make process and business decisions surrounding your data. Below are three tips to develop a data driven process:
1. Make sure your processes are built with data in mind. You want to make sure that processes actively involve using data to help make decisions.
2. Make sure your processes are flexible and adaptable within a moment’s notice. For example, are you able to switch from a decentralized to a centralized cash ordering process on the fly if you must? Would everyone involved understand their roles and responsibilities?
3. Regularly evaluate your processes. If your processes are data driven, you will naturally identify new opportunities for improvement that become visible.
Make sure to check out part one of our e-book, “Supply Chain Management 101 for Financial Institutions” to learn more about potential process pitfalls you could encounter in your financial institution.
Once you have efficient and data driven processes in place, it is also important to evaluate the data coming out of your software application(s). Many organizations agree that data is the most important player in making sound business decisions. However, there are often red flags when data and processes become outdated. Some common red flags to look for are departments working in individual silos and operating with different versions of conflicting data. It can be risky to use old and inconsistent data to make business decisions for present times.
Today, the most successful organizations encourage their entire staff to be data literate and have access to the data they need in order to perform their jobs better. That’s why the KPMG IT Advisory published an article in Compact Magazine about how to become “data literate,” which signifies that they are proficient in understanding, analyzing and making sound business decisions based on data.
4 Steps to Becoming Data Literate
To understand, data users should ask, “What data is being presented? What does the data tell us? Which insights can be derived from it? What is the impact on business processes?”
People need to use data and know what is available within the data set. Know how the data is composed; understand the type of data; and where it originates from.
Be able to use statistical and analytical methodologies to create valuable insights.
To reason with data means to successfully communicate data effectively. Tell the right story and clarify your steps and results through the right visualizations.
To learn more about how to create processes that are efficient to enable high quality data make sure to download Part 1 of our new e-book, “Supply Chain Management 101 for Financial Institutions.”