Do our Banks Really Need Better Data Analytics?
Banks must transform to fit in well with the Evolving Digital Ecosystem and Advanced Analytics will help them get to it with ease and precision… Or else … they will be losing out on their market share and profitability!
This is What Banks Need Most to Be Transformational in the Digital Landscape
Today’s banking systems are getting more complex than ever. To overcome this complexity, banks must stay abreast of the best way to mitigate risks, enhance security systems, ensure regulatory compliance and meet customer needs effectively.
To launch the right products for the right customers in a secure, dynamic approach, banks must invest in certain frontiers that will pave their way towards success in the high-end digital future:
- Make data work by enabling communication between disparate data formats that existed in the past and are the language of the future
- Rely on people who possess the skills to derive insights from data. Empower them with the analytics and communication tools for collaborative decision making and meaningful information discovery
- Form correlations between data and visualization of patterns and relations, as it is critical to advanced, transformational business planning
The Value of Advanced Analytics to Today’s Banking Industry can never be underestimated
In the end, it’s all about innovation and precision risk assessment, which will directly impact your financial bottom line. To expand your opportunities and be transformational while reducing costs, there is no better way to differentiate and charge through your competition rather than by driving decision making through analytics. Advanced analytics is an indispensable tool for generating sales leads, carrying out risk management or revenue management. Not only does analytics redefine core functions, but it an essential tool when it comes to marketing, budgeting and planning your business in general.
So How Impactful is Advanced Analytics for Banks Worldwide?
By the year 2020, close to 40 trillion gigabytes of data is expected to be generated, be it tweets, Skype calls, YouTube videos or emails.Sifting through this data and listening is imperative to realize important insights and come up with targeted strategies for customer acquisition and retention. It helps banks accomplish accurate reporting and ensure regulatory compliance and project their system as profitable and competitive.
Clearly, this is not as easy as running queries on a database. It requires the use of advanced analytics – to address the variability and volume of available data.
- Precision Analytics can help calculate risks. Banks must find a way to manage risks, given the broad spectrum and depth of investments they engage in.Analytics in banking is hardly limited to the financial domain. Data pertaining to many areas, from their target market to the viability of their securities can be instrumental in determining, whether their investment would be worthwhile or not. Besides, it helps deliver better services to customers through their financial need analysis.
- Trends Can Unravel Important Data for Effective Future Planning: Analytics can be the source of determining key performance indicators and reporting can be an important source of responding to customer demand and strategic planning for the future.Visualization of critical data, customizability in extracting selective data sets and historical data analysis cannot be accomplished without analytics. Eventually, banks must remain competitive, and the two main factors that directly impact their market position – compliance to regulations and compliance to customer requirements. Both of which are entirely dependent on deep analytics.
Precisely, 96% bankers acknowledge that the banking world is witnessing the organization of a digital ecosystem. However, the downside is that 87% of the surveyed banks admit that their systems are not smart enough to flow with the digital tide.
Banks are losing out by maintaining a status quo and incrementally upgrading their analytics strategy to address a current need. Partnering and collaboration in conjunction with “agile, scalable systems” and “real-time data analytics” are the door to a successful, thriving banking business in the digital ecosystem.
Banks Can Claim Lost Revenue Avenues through their Improved Analytics Focus.
Analytics directly impacts a bank’s market domination. It is rather critical for banks to change priorities and analytics approach and match their market position to currently prevailing trends.
The Banking Top 10 Trends 2016 report sheds further light on this aspect. Charging optimally for every service delivery is critical and suboptimal or overpricing is commonplace without the use of advanced analytics.A pricing decision which is not based on analytics will create the means to give away appreciable portions of their revenue pie to players even outside of their domain. Eventually, banks become less informed about their customer expectations and therefore less profitable.
In addition to becoming agile and adopting a service-oriented architecture (SOA), Advanced Analytics is one of the critical trends for banking success. It is a key factor that helps drive customer insights, curtail fraudulent activity and manage risks better.Banks need the intelligence that helps frame effective path-breaking strategies. Banks can take advantage of a number of analytics realms in prediction, visualization, simulation or optimization to address their specific business architecture needs and strategic requirements.
Advanced Analytics is Imperative for Today’s Banking Success. Do You Agree?
Banks must ensure that their digital strategy is not limiting to make the most out of data discovery from Advanced Analytics. Legacy infrastructure and the inability for effective data communication produce great obstacles.
The inability to address this and other surrounding constraints prevents banks from successfully breaking into the digital.
- Banks will be able to understand customers better, retain customers, acquire new customers and reduce attrition through their improved analytics focus
- Better analytics helps deliver targeted products and services, convert and serve customers better and market themselves better.
- At the core, it helps drive better decisions and best in the market opportunities.
All this translates into better profitability and a drastic upsurge in the financial bottom line.
What’s your perception of banking success?
Is Advanced Analytics the answer to profitability woes in the banking sector in today’s disruptive digital dimension?
Share your views on social media and let other’s get a peek at the banking success factors!