Larger financial institutions have an edge over small and nimble Internet upstarts in electronic customer relationship management (CRM), according to a new Meridien Research report.
Larger institutions often have more experience with data analysis technologies and have already built data warehouses to track the huge amounts of customer data they've collected, said Anya Astafieva, a Meridien analyst who authored the report on the ability of banks to track Web site use.
"Newer institutions, which have to justify their existence and are looking for quick results and quick returns on investment, will be focusing more on acquiring new customers and will be more likely to treat the Web as the primary channel, " she said.
But data analysis is more meaningful when it includes other sources of data, Astafieva said. This includes data from third parties, legacy systems, call centres and physical branches.
"It requires more sophisticated software, more effort and, ultimately, more financial investment," she said.
"It takes longer to implement and to see a return on investments but is more fundamental and gives the institution an advantage."
However, Astafieva added that large companies are at a disadvantage when it comes to speed.
"The corporate culture that they have doesn't allow them to move as fast as the Internet environment requires them to," she said.
"The whole nature of the corporate environment, in terms of the time it takes to make decisions, is limiting."