How Salesforce Data Cloud Powers the Future of Financial Services

In my previous post, I provided an overview of Salesforce's Data Cloud - a real-time customer data platform that creates unified customer profiles. In this post, we’ll explore some key use cases in financial services.

The Need for Harmonized Data

Delivering exceptional customer experiences requires financial institutions to have a comprehensive understanding of each customer. However, most organizations struggle with data trapped in silos across various systems. Core banking, insurance admin, wealth management, CRM - each contain fragments of customer data.

This is where the data harmonization capabilities of Salesforce Data Cloud come in. Data Cloud ingests data from all these systems, matches identities, resolves conflicts, and stitches the data together into unified customer profiles with a complete financial picture.

With this foundation of accurate, up-to-date data, financial institutions can then tap into the power of analytics and AI to derive insights and power use cases like:

Enhanced Risk Modeling for Banks

Banks can ingest historical credit bureau data, real-time transaction streams, and other sources into Data Cloud. This provides the volume and variety of data needed to develop highly accurate risk models using machine learning.

By linking identities and mapping attributes, far more predictive insights can be generated. According to a recent Salesforce survey, models built on Data Cloud data are over 25% more accurate in identifying credit risk based on industry benchmarks. Additionally, more accurate models allow banks to lend with greater confidence while optimizing decisions.

Next Best Action for Insurance Agents

By consolidating data from various core systems like policy administration, claims management, IoT devices, and customer engagement channels, Data Cloud creates comprehensive real-time profiles of each customer. Sophisticated analytics engines then process these unified profiles to determine the optimal next action for service agents across different interaction points.

Furthermore, with data flows synchronized and profile attributes updated each millisecond, the next best action models can analyze the current context and needs of each customer to provide relevant recommendations to agents. This helps align the right message to the right channel at the right time based on the most recent customer activity and preferences.

Over time, the system gets smarter about mapping contexts to actions through machine learning, leading to higher relevancy of suggestions. And by coordinating analytics across data assets, insurers can boost satisfaction while streamlining operations.

Holistic Client Insights for Wealth Managers

By ingesting data from core banking systems, lending platforms, investment accounts, and external fintech apps into one unified Data Cloud, wealth managers can create 360-degree client profiles.

Moreover, this consolidation of data assets provides portfolio managers the full spectrum view needed for complex analysis and simulations. With holistic understanding of client positions across accounts, asset classes, and institutions, more strategic asset allocation decisions can be made.

Additionally, relationship managers and financial advisors gain access to a comprehensive client snapshot that incorporates the entire wallet share - from banking products to insurance policies to investment holdings. This powers the next best action recommendation engine and enables highly personalized conversations.

By leveraging these insights, advisors can have discussions focused on the specific needs and life stage of each client.

Asset Management Firms Accelerate Growth

Asset managers can greatly benefit from harmonized data to enhance their investment decision-making capabilities. By consolidating client data from various sources such as portfolio management systems, external platforms, and market data feeds, a harmonized data platform creates a "single source of truth".

Furthermore, this provides portfolio managers a comprehensive view of client portfolios and positions, overlaid with market data for deeper analysis. Additionally, relationship managers gain access to a unified client profile that includes the full spectrum of their assets, transactions, and interactions.

This powers the next best action and enables personalized conversations to deepen engagement. With clean, connected, and real-time data, asset managers can spot opportunities faster, act quicker based on market movements, and deliver a more tailored client experience.

In summary, McKinsey estimates harmonized data can lead to a 20-30% improvement in asset manager productivity and profitability.

As these examples illustrate, harmonized, real-time data is pivotal for financial services firms looking to increase efficiency, manage risk, and strengthen engagement. Salesforce Data Cloud makes this level of connectivity and insight possible.

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