Data mining services put advisers ahead of the game

Financial services groups that invest in quality data mining services and open systems may be the only survivors of the technology boom, according to Acxiom chairman Andrew Robb.

Speaking at the Next.Direct seminar in Sydney, Robb said that while data mining conjures up images of "black boxes, and complex analyses", financial service firms using the system efficiently are ahead of the game.

"Those companies who invest in quality data, use thorough and powerful verification and strong, open systems will be the ones left with the gold when the on-line rush is over," Robb said.

"There is a race to obtain and keep profitable customers. This requires speed of decision making and quality knowledge of customers."

Robb said large financial service providers may be deterred from using data mining technology due to the daunting challenge of collecting and synthesising all information across many products and distribution systems.

"Prompted new technology is creating 'virtual' data warehouses linking many and varied data sources, some of which may never see the inside of a data warehouse. New operations allow users to get data from inside and outside the company," Robb said.

"However, a gradual approach, of implementing product segments by product segments, regions by regions, then they will learn by experience. Having an all or nothing approach has a very poor record."