S3 | E14: How to Start a Data Strategy From Nothing: Make the Mind Shift From Stuck To Start

For many community banks, embarking on a data strategy can feel like an overwhelming endeavor. Limited resources, small teams, and the misconception that “big data” is only for large institutions often lead to inertia. But as discussed in the latest Risk Intel episode with Jeff Fink, the real differentiator in today’s competitive banking landscape is not size—it’s mindset.

Here’s how smaller financial institutions can shift their thinking and take strategic steps to harness data as a core asset.

Shifting the Mindset: From Overwhelmed to Opportunity-Focused

Community banks often delay data initiatives because they fear the complexity, cost, or lack of in-house expertise. Jeff Fink suggests changing the conversation: Instead of trying to “boil the ocean,” focus on incremental value. Data is a tool—one that, when used wisely, can improve efficiency, support risk mitigation, and strengthen relationships.

“Let’s stop thinking about doing everything at once and start by getting some value from what we already have.” — Jeff Fink

To secure executive buy-in, leadership must model a data-centric culture. That means making fact-based decisions and integrating data usage into regular business goals. When bank leaders set the tone, data becomes a shared priority, not just an IT initiative.

Quick Wins That Build Momentum

With limited tooling or budget, many institutions ask: “Where do we even start?” Jeff recommends identifying pain points where data can deliver immediate impact. Examples include:

• Automating manual reporting
• Analyzing customer churn
• Measuring onboarding process efficiency

These small-scale, department-focused initiatives help demonstrate value quickly. Even if the data is cobbled together from disparate systems, the resulting insights can drive smarter decisions—and prove the case for continued investment.

“Quick wins help build credibility and create organizational momentum. They shift the conversation from ‘Can we do this?’ to ‘What’s next?’" — Jeff Fink

Laying the Foundation: People, Process & Technology

After proving initial success, the focus must shift to building a scalable foundation. According to Jeff, that foundation includes:

1. ‍Data Governance
   
   • Define data ownership across departments
   • Standardize key definitions (e.g., "active customer" or "delinquent loan")
   • Control access to sensitive data, especially PII‍
2. Team Structure
   • Establish data stewards within each business unit
   • Ensure collaboration between business and IT
   • Foster data literacy and shared accountability
3. Right-Sized Technology
   • Invest in "just enough" technology to support key goals
   • Use sandbox environments or vendor partnerships for proof-of-concept projects
   • Scale platforms over time, not all at once

Think Big, Start Small, Scale Smart

The core message of this episode is simple but powerful: You don’t need a massive overhaul to become data-driven. Start with what you have. Focus on value. Align your teams. And take small, meaningful steps toward along-term strategy.

“Data doesn’t replace relationships in banking—it empowers them.” — Jeff Fink

By embracing this mindset and taking action, even the smallest institutions can position themselves for lasting success in a data-driven future.