The base of banks, like any other company, 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’s still lack of smart and intuitive tools such as Business Analytics and Intelligence to nurture this data.
Business Intelligence is the scope of using the power of analytics and reporting to use the banking data to determine 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 numerous changes happening in the last year in terms of banking regulations, lower rates of interest and NPA levels reaching an all-time high, bank’s profit margins are severely impacted. Banks have to work out new ways of doing business and make profits by strengthening their client relations.
It’s been noted that the banks who have spent in BI technologies are gaining a competitive edge on their competitors. On exploiting the innovative 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
Though business Intelligence in banking is relatively a new idea, however, it has been embraced with open hands. And, it’s only increasing in its capacities. With each passing day, steps are being taken to make BI tools more robust, accessible, economical and attainable.
The banking CIOs are looking forward to investing in BI in future. Check out the Indian banks that have already been advocating the benefits of Advanced Analytics and Business Intelligence.
Putting our Banks for Future with BI
The trick to effectively serve banks’ clients is by accurately utilising the information for offering them highest value at all times. Banks must differentiate their products and encourage clients to select them by highlighting how they are better. Plugging-in a Customer Relationship Management (CRM) applications can prove to be a good idea alongside a nicely implemented BI solution.
For this, there must be sufficient coordination between the business and technology deployed. Banks and other financial institutions can certainly unlock new horizons of company growth by efficiently utilising organisational data and thus gain valuable, actionable insights.