In the ever-evolving landscape of finance, it’s easy to get swept up in the excitement of data-driven analytics. We often hear that the future of finance lies in harnessing the power of data, but let’s take a moment to reconsider that notion.
Here’s the issue at hand: Most of us dedicate 100% of our time to analysing a mere 20% of the available data. Yes, you read that correctly. We are so engrossed in scrutinising the information within our internal systems that we often overlook the vast treasure trove of data that lies beyond our immediate view.
So, why does this happen?
The answer is simple: We tend to focus on what’s readily available and easily accessible. Our internal systems provide a wealth of data, and it’s only natural to dive deep into it. However, here’s the catch—more than 80% of the valuable data we need resides outside of our immediate purview.
- Competitor Insights: Your internal systems won’t reveal what your competitors are up to. Yet, understanding their strategies and actions can be a game-changer in the world of finance.
- Consumer Disposable Income: You won’t find information about how much disposable income people have within your internal data. This critical aspect of consumer behaviour can greatly impact financial decisions.
- Brand Perception: Your internal systems won’t provide insights into what people think about your brand or product. Understanding public sentiment is crucial for making informed financial decisions.
- Product Usage Patterns: Information about how people are using your product or service often remains hidden within external data sources. This knowledge can inform product improvements and marketing strategies.
And the list goes on. There’s a vast universe of untapped data that can revolutionise the way we approach finance. It’s time we reevaluate our expectations from analysts in the financial sector.
Sure, data analytics can automate tasks, create stunning visualisations, and provide us with fancy tools to play with. However, let’s not forget the age-old wisdom: “Garbage in – garbage out.” In other words, the quality of insights we derive from data is only as good as the data itself.
So, what’s the solution?
Avoid the Microscopic Approach: Resist the temptation to delve even deeper into the 20% of data you can see. Instead, broaden your horizons and shift your focus to the vast 80% that remains hidden from view.
In this ever-evolving financial landscape, it’s crucial to adapt and evolve. To succeed in the New World of finance, we need to look beyond the obvious and explore the untapped potential of external data sources.
If you’re eager to learn more about how to thrive in finance in this data-driven era, consider exploring our online finance business partner development programs. Our programs are designed to share the insights we’ve gained from the world of sales, insights that we wish we had known when we were solely focused on finance. It’s time to unlock the true power of data in finance and embrace a future where possibilities are limitless.