The influx of data from multiple sources, and in large masses, has been, and continues to be, a blessing in disguise for most organizations. Financial institutions, being one such recipient of these “blessings,” are now placing greater emphasis on using this vast amount of data to generate resonant and actionable insights. The problem, however, lies in scaling up analytics from a sideline practice to an organization-wide initiative. Regardless, companies are striving to overcome that problem because of a few, but very important benefits.

  • By having a deeper understanding of customers, along with insights on their transactions and trades, financial institutions have the opportunity to create more effective solutions, sometimes even tailor-made, to add value to a customer’s overall experience. With better insights, the cost of acquiring customers goes down as well, which proposes analytics as a win-win for both companies and customers alike.
  • With better big data management, processes become better too, thus enhancing productivity. An advanced analytics hub can help provide faster responses to customer queries and more accurate information to those posed by regulatory authorities. For example, banks have used predictive analytics to gain an understanding of how much cash is required at each location, and how that cash can be sent through the most optimal route to save money.
  • One of the major benefits of having an analytics hub in the financial industry is the benefit provided to risk management services. With better information about customers, and well-founded insights into the decisions they may make, financial institutions can gain a better understanding of the returns they may receive from potential investments, allowing such institutions to make more sound investments. Unreliable, and even fraudulent “opportunities” can be weeded out before even uttering a word.

CEOs and CIOs need to have a strategy for organization-wide digital transformation on their agenda. By establishing analytics as a business discipline – the go-to function for decision makers – analytics can be scaled up from an as-needed basis to an organizational growth basic. Investments can be small and steady, but the consistency in use of data analytics can lead to more positive, impactful decisions in the long run. Who’s to say analytics can’t help financial institutions become the center of a consumer ecosystem rather than just a feed into that ecosystem?

 

Senior Account Executive Anilla Workman
Anilla Workman
Senior Account Executive

 



Consumers today are an empowered lot with the internet and with the many ways to stay connected. So they are constantly looking for innovative, secure, robust, and optimized banking solutions. This has made it imperative for banks to maintain the same pace of change andengage with digital transformation on an on-going basis.The “anytime, anywhere” demands customers seek from the banking industry has resulted in tremendous digital transformation across this vital industry.

According to Peter Sands, CEO of Standard Chartered, “Of course banks have invested huge sums in technology – automating processes and enabling customers to bank online. The competitive landscape is changing as new and existing players adopt digital models.”

While most banks are adapting to the change, there is a long way to go. Digital transformation is not just about adopting technologies at work, it’s a complete cultural shift today. Here’s how the banking industry has embraced digital transformation in its work culture.

Paymentsmade easy

Withthe rise in e-commerce where customers can fulfill their daily needs lying on their couch, it has become imperative for banks to improvise and digitize their payment solutions. Now customers can pay, transact and even transfer with ‘one-click’ solutions, anywhere-anytime. Payment gateways like PayPal, HSBC, etc. have changed the face of payment and transactional operations in the banks.

A superior customer experience

Superior customer experience is the key to build trust and retain clients in the long term. With online banking services, the banking industry has greatly simplified the way they serve their customers in real time. In addition, digital banking offers advanced data and analytics capabilities that help banks offer customized solutions.Also, with social media channels, it has now becomes easy for banks to know more about customer expectations and interact with them directly for better understanding.

Improving internal operations

Banks have digitized their internal processes to quite an extent to scale up productivity.They have aligned their existing processes with the new, modernized tech-based solutions. Instead of having endless documents, they have switched to a digital approach, which is quick, effortless as well as paperless. With software solutions like customer management systems, banking officials are now able to validate and process information quickly rather than having to keep asking customers for additional documentation. These approaches are easier and simplify banking.

Customers today want their banks to be partners that focus on relationships instead of just transactions. Therefore, banks are enhancing their capabilities by implementing technologies to exploit the power of analytics,customer information, and digital channels to drive growth in real time across multiple platforms. Continuing with this digital approach, banking industry can definitely thrive in this race.

 

Sr. Account Executive Anilla Workman
Anilla Workman,
Sr. Account Executive