Head of Innovation Jonathan Warren explains why data is key to supporting vulnerable customers
Having spent the past few years assessing the complex issue of vulnerable customers, I am convinced, more than ever, of the critical role of data. I am a data advocate and see it as a fundamental, strategic asset in the modern economy. Firms that master it and start making data driven decisions will possess the acuity to thrive.
The potent value of data in decision making has been proved in several arenas. If you are into sport, you will be aware of ‘Moneyball’, the story of an American baseball team that competed far above expectation by identifying undervalued players. The move shifted the emphasis from intuition and perception to evidential decisions based on numerical, fact-based information about player performance, an approach that is now common across elite sport. If you are into investing, data analysis is fundamental in portfolio theory, constructing the efficient frontier and capital allocation line to create a portfolio to maximise potential return for a given risk level. Value investors equally leverage data and financial ratios to find undervalued stocks.
The problem of course is that in financial services, we have lots of data…
