Bank data—Untapped high return asset or a junk bond?

Banks must find new sources of revenue to mitigate the pressure on traditional margins. Many are looking at their data as a potentially rich new seam of value. It’s easy to see why.

What’s in this report?

• Accenture estimates suggest that up to 30 percent of traditional bank revenues could disappear over the next two decades. Untapped and undervalued data is one of the keys to mitigating this revenue erosion.
• Our research finds that 70 percent of customers globally, are willing to trade more of their personal data for new services and discounts in exchange for value.
• How banks use their data to provide actionable insights to others, not the data itself, is the key to realising new revenue.
• External and internal business models offer the opportunity to generate significant value.

So how much value is up for grabs?

Globally, banks are considering the risks and threats to new revenue. Despite the risks and their associated implications, the data commercialisation opportunity, if executed carefully, remains strong. Global examples of cross industry players indicate that banks could expect a minimum uplift in existing revenue of 1-2% cross three external monetisation business models.

The real value and potential for banks is much more likely to be found in using their data to help others create highly targeted, relevant and timely marketing offers.