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