1 Insight and Peer Analysis 2014
2 Insight as a source of competitive advantage We are living in a world that generates and consumes ever greater levels of data. More than ever before, this gives businesses a far greater insight into their customer s needs, the attractiveness of new markets and what levers fundamentally affect their performance. With the increase in the use and power of remote channels, such as the internet and mobile, the level and importance of this data will only grow as customers feel happier using these mechanisms to undertake their financial dealings. However, within Financial Services, Big Data has proved extremely difficult to use effectively. Today firms struggle to make sense of the data before them, and how to put it in the context of their operations so they can act in a manner which optimises their business model and demonstrates their compliance in a highly regulated environment. Even when the data provides a clear steer of what to do, the right actions are not always undertaken. To leverage data successfully, and act on its insights, firms must both understand its source and apply it to their specific business needs. Firms that use this to their advantage have built relevant MI frameworks; aligning data management to decision making and in turn supporting a better experience to their customers while understanding the implications of their actions. Mechanisms for data collection are also changing; today leading practice is to build in ongoing, immediate feedback mechanisms. One such example is securing customer feedback, where customers now expect to be given the opportunity to provide immediate feedback through remote channels such as the web, or mobile SMS. These timely and focused approaches help firms to successfully deliver root cause analysis and a more robust, consistent and managed customer experience. Some real challenges How to make root cause analysis effective? How can I show my strategy is really working? Where to focus on improving customer experience? How do I evidence a Conduct culture? What data is needed to allow for balanced decision making?
3 Unpicking big data to get to the right data The goal is to turn data into information, and information into insight Carly Fiorina, Former CEO of HP Grant Thornton has worked closely with a range of financial services clients supporting them to collect and interpret data. The Grant Thornton Insight and Peer Analysis (IPA) Group is a dedicated team, with a long history in providing actionable insight to our clients. This work has looked at specific hot topic areas such as conduct management, complaints, customer experience and the cost to serve associated with Operational Excellence including outsourcing, platforming and right shoring. Our strong understanding of the market and the business models our clients operate ensures we are able to support firms get and understand the Right Data. This is supported by a range of data points on operational and customer performance metrics for retail banking, life and pensions and investment management sub sectors. Interpretation Benchmarking Insight Evidence Action Right data Are we collecting the right data on which to base the analysis? What does the data and the contextualisation mean to our business? How do we stack up against our peers or other sectors? What are the key messages and how best might we move forward? What can we use to demonstrate we are moving forward in the right manner? What needs to be done and when is best to make the change happen?
4 Grant Thornton Insight and Peer Analysis Grant Thornton s Insight and Peer Analysis team has been benchmarking in UK financial services continuously since 2002, providing independently verified information unavailable elsewhere in the market, with access restricted to participants only. 1Grant Thornton Insight and Peer Analysis helps clients: Determine absolute and relative metrics of business performance Identify performance improvement opportunities Model and plan for implications of future business and industry change... and measure subsequent performance improvement Understand relative priority of regulatory challenges Understand their customers 2Using a suite of tools to identify and measure: What we consider to be best practice, and performance improvement potential from an internal business perspective, and an external customer perspective Performance vs. peers, vs. wider market, and vs. other industry sectors The degree to which Conduct culture is embedded 3Supported by consulting analytics to: Frame findings within market context, and what others are doing Help interpret results and formulate subsequent plans Provide unique insights tailored to each client
5 Turning the right data into insight and advantage When applied correctly, right data has a number of powerful benefits in today s financial services sector, providing firms with a greater understanding of the patterns and principles behind that data to allow stronger, actionable insight. The benefits of such Insight allows firms to 1 Enhance MI to make more timely, informed, and effective business decisions. Provide a methodology to turn insight into action. 2 Understand the drivers of both their cost and customer experience profiles. Establish the link between the business and the end customer AND internal customer (employee). 3 Embed and evidence customer Conduct across customer journeys. Run their business more transparently. Truly understand what is important to their customers. 4 Provide granular market context to support strategic decision making. 5 Understand the impact of change, the art of the possible, and the ecosystem within which they operate. 6 Apply the analysis to any point in their business cycle to baseline, to track, to understand, to act. Insight Understand principles Connectedness Knowledge Understand patterns Information Understand relations Data Understanding
6 Seeing the wider context through peer performance Interpretation and insight are greatly enhanced by the ability to contextualise the information and knowledge against a wide set of data points from peer firms or outside the industry. In an environment where the bar is always moving, conducting peer analysis is key to understanding where firms fit; and more particularly what can be learned from other players, how they have responded to the same challenges and the levels of success they have had. Online data entry Online validation Phone helpdesk Commercial dynamics Expert support Access Grant Thornton s Insight and Peer Analysis Practice leverages the latest technology sets allowing data capture, verification and clients to undertake their own analysis and produce tailored MI. Service dynamics Customer dynamics Tools Our extensive data repository looks across a range of commercial, service, business, and customer indicators to allow a clear view of performance and trends to be derived. This is supported by expert analysis and a dedicated help desk to provide assistance and topical insight into what the benchmark data is pointing to. Online slice and dice data Client forums Business and proposition Individual and group reporting Ongoing access Dynamic modelling/ profiling Knowledge sharing Consulting analytics Interesting topics Support
7 Getting to the big picture Why Grant Thornton? Grant Thornton s Insight and Peer Analysis team has been benchmarking in UK financial services continuously since 2002, providing independently verified information unavailable elsewhere in the market, with access restricted to participants only. Over 200 Executive reports have been delivered to more than 50 clients across insurance, investment management and retail banking. We use secure cloud based technology to deploy our proven methodology. Our functionally rich online portal provides access to a range of features, including dynamic modelling tools, tailored reports, and real-time validation. The insights have been used to support the delivery of change to improve both business efficiency and customer experience. Through a combination of: i) our knowledge of the UK Financial Services sector; ii) the performance data underpinning it and; iii) a detailed understanding of the risk and regulatory environment We are able to assist firms in delivering both insight and practical solutions to support their change agendas and use the right data to evidence the rationale for the approaches they have adopted. Our Insight and Peer Analysis team assists clients in: Delivering the right operational efficiencies Securing the right customer and business strategies Highlighting the customer and staff feedback, and the right approaches to improving their experience Showing peer to peer performance Providing clear, focused actions on which to undertake considered change.
8 Contact Ewen Fleming Partner, Banking T +44 (0) E Warwick Clews Partner, Insurance T +44 (0) E Kenn Taylor Partner, Investment Management T +44 (0) E Paul Willis Head of Insight and Peer Analysis T +44 (0) E 2014 Grant Thornton UK LLP. All rights reserved. Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another s acts or omissions. This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. grant-thornton.co.uk Grant Thornton UK V24157