HOW BUSINESS INTELLIGENCE CAN BENEFIT THE BANKING INDUSTRY
Business Intelligence is an umbrella term that refers to the best practices done when collecting, analysing, disseminating and representing data. BI can be harnessed to ensure banks and their clients are laughing all the way to the, well, bank.
But how? How can analysing business data do that? What is it about integrating BI into bank operations ensure absolute institution and customer satisfaction? What exactly is the role of BI in banking?
The main roles of BI in banking are as follows:
Monitoring cash flow
Data about the movement of the money can be easier monitored. Track income, and expenditure.
Point out areas of redundancy. Bolster efficiency and effectiveness.
Integrating data from disparate sources enables the creation of a data warehouse. This is a centralized repository where data can be accessed across the enterprise for analysis.
By gaining visibility across departments and keeping a close eye on cash flow, a bank would be able to tell which accounts are most used and which ones lie dormant.
BI allows data to be analysed and compiled into reports that are easy to read and understand. They are also regularly updated.
BI tools enable you to combine databases from different sources on the fly, and receive answers to any ad-hoc questions as soon as they are thought of.
The dashboards and reports generated have level based security measures that ensure the data is accessed only by the necessary user.
Business intelligence, when applied, has the following advantages for the banking sector:
After implementing BI solutions, banks design services effectively.
Customer needs are observed and met.
Long term solutions to ensure customer satisfaction are developed.
Market-leading products are implemented to gain competitive advantage.
With access to data-based actionable insight, banks reduce the chance of risks. Fraudulent incidents are easier to offset with a BI system in place. For instance, in the event of credit card fraud, a customer’s transaction history can be analysed to detect and prevent the situation from worsening.
The probability of a loan defaults by a client is easily calculated based on their earning capacity, credit portfolios and the economic ecosystem.
BI tools help the bank ensure compliance with state rules and regulations.
Client satisfaction/ increased bank profitability
BI tools enable increased internal staff efficiency.
Tracking profitable individual streams is easier.
Key performance metrics such as number of customers per locale, profitability and compare them with industry norms to ensure attainable objectives are being met.
More effective marketing campaigns are designed with accurate customer segmentation.
Point of sale data shows customer banking habits and helps the banks identify the more active users who can be retained.
Customers can easily manage their finances by being able to track and analyse their patterns with real time understanding of their payments and spending.
Win over customers from rival institutions. Identify the trends of the competition and outline a plan on how to improve services to be better than the competition.
Track changes in consumer behaviour and tailor products as needed.
Implementing an establishment-wide BI solution is guaranteed to help decision makers gain insight that can help them gain competitive advantage. Data driven decisions are more than likely the right ones to be made as guesswork is completely eliminated. Business intelligence is a sure way of making everyone happier, wealthier and wiser.
Pathways International provides cost effective, easy-to-implement BI solutions that are guaranteed to take your business to the next level and increase your bottom line exponentially.