A new report, commissioned by KlariVis, a performance intelligence platform, and conducted by Cornerstone Advisors, a consulting firm for financial institutions, indicates that most community banks and credit unions are not adequately prepared to fully leverage artificial intelligence due to issues with data quality and infrastructure.
The study, titled “Improving Your Financial Institution’s Data Execution Quality (EQ),” surveyed over 120 financial institutions to assess their data management and utilization across business functions. Findings revealed that the average institution scored 241 out of a possible 500 on Cornerstone’s Data Execution Quality (EQ) index, suggesting a significant gap in achieving optimal data utilization.
While more than one-third of community institutions have deployed AI tools such as chatbots, and an additional quarter are exploring generative AI, the research emphasizes that such initiatives are unlikely to succeed without stronger data foundations. Kim Snyder, founder and CEO of KlariVis, stated, “Financial institutions cannot expect meaningful AI outcomes when they are still working with fragmented systems and inconsistent data practices. Strengthening data visibility and quality is the first step toward responsibly unlocking AI’s potential.”
The report highlights a strong correlation between data EQ and AI readiness. Institutions with higher data EQ scores typically treat data as a strategic asset, foster a culture of data-driven decision-making, and regularly review their data strategies. Ron Shevlin, Chief Research Officer at Cornerstone Advisors and the report’s author, noted, “There is no AI strategy without a data strategy. Financial institutions that invest in improving data quality, governance and accessibility will be the ones best positioned to see measurable results from AI.”
The full report, “Improving Your Financial Institution’s Data Execution Quality (EQ),” is available for download.
KlariVis is a banker-built performance intelligence platform designed to provide financial institutions with clarity, confidence, and speed. It unifies fragmented data from various institutional departments into a single source of truth, aiming to accelerate decision-making for profitability and growth.
For over two decades, Cornerstone Advisors has offered insights, strategies, and data-driven solutions to banks, credit unions, and fintechs. Their services include technology system selection and implementation, contract negotiations, vendor management, performance improvement programs, strategic planning, merger integration, and enterprise program management.
