The foundation of banks, like any other business, is “data”. This data constitutes customer data, operational data, compliance data and more. Then, why is it that even today when the banking sector is growing like never before, there is still a lack of smart and intuitive tools like Business Analytics and Intelligence to nurture this data.
Business Intelligence is the scope of using the power of analytics and reporting to utilize the banking data to identify new markets/prospects, manage risks and make decisions based on actionable insights.
According to Forrester, BI is listed as a top technology priority for CIOs for five consecutive years across all the industries.
As a result of the many changes happening in the past year in terms of banking regulations, lower interest rates and NPA levels reaching an all-time high, bank’s profit margins are severely impacted. Banks have to figure out new ways of doing business and make profits by strengthening their customer relations.
It has been noted that the banks that have already invested in BI technology are gaining a competitive edge over their competitors. On exploiting the advanced capabilities of analytics and BI banks can:
• Gain opportunity to cross-sell products and services to all customers
• Identify customers and products that are more profitable
• Reduce the cost of collecting, formatting and polishing banking data
• Improve decision making capability based on fact-based information, at the right time.
This is just the beginning
Although business intelligence in banking is a comparatively new concept, it has been embraced with open hands. And, it is only increasing in its capabilities. With every passing day, measures are being taken to make BI tools more robust, accessible, economical and attainable.
The banking CIOs are looking forward to investing in BI in the future. check out the Indian banks who have already been availing the benefits of Advanced Analytics and Business Intelligence.
Setting our Banks for the Future with BI
The key to effectively serving banks’ customers is by accurately utilizing the data for offering them the highest value at all times. Banks must differentiate their products and encourage customers to choose them by highlighting how they’re better. Plugging-in a Customer Relationship Management (CRM) software can prove to be a good idea alongside a well implemented BI solution.
For this, there must be enough coordination between the business and technology deployed. Banks and other financial institutions can certainly unlock new horizons of business growth by efficiently utilizing organizational data and thus gain valuable, actionable insights.