Welcome to episode 12 of the naked analyst where we discuss the latest research identified on our new doclens.com website. We lead this week with a typical survey produced for our industry. This time it is by Cisco Consulting Services – but it could easily have been published by any other leading consulting or vendor organisations. The reason it warrants inclusion in THiNK is firstly because it has some value, but it also highlights some of the typical shortcomings of such information. The survey is called ‘Reimagining the Digital Bank’.
For many years vendors (and financial services organisations) have been trumpeting personalized financial services through advanced analytics. Results to-date have been mixed and you could argue that the greater share of the benefits have in fact gone to the non-banking institutions that are new entrants. The Schwab’s, Google’s, PayPal’s and Amazon’s of the world.
The report has flaws, mainly in its scope and vision. Where is the deeper discussion on new entrants? The specialists that are already 100% digital and now cross selling core banking and insurance products and services? Despite this, there are nuggets.
The most interesting part of the report is that the study identifies 4 main customer segments in terms of digital behavior — and not just on age.
Analytical Value From Data That Cries Wolf
Not a long read but worth it. The author points out that data can easily mislead and it is vital to understand the trade offs between false positives and false negatives. He then goes on to explain the strategies to avoid issues.
We Are All Confident Idiots
Apparently we all are. David Dunning is a professor of psychology at Cornell University and his article argues convincingly that we all fail to recognise how ignorant we are – even as subject matter experts. He further shows that poor performers often have an ‘inappropriate confidence’ because they lack self-insight.
I recommend takinging a look at these 3 items just published on doclens.com and remember we are offering free subscriptions to the first 1,000 founders. So sign up soon!
Until next time, thanks for watching.
Tips from a 25 year veteran of the analytic profession.