The foundation of banks, like any other business, is”data”. This data comprises customer information, operational data, compliance information and much more. Then, why is it that even now 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 utilise the banking data to determine new markets/prospects, manage risks and make decisions based on actionable insights.
According to Forrester, BI is recorded as a top technology priority for CIOs for five successive years across all of the industries.
As a consequence of the many changes happening in the last year concerning banking regulations, lower interest rates and NPA levels reaching an all-time large, bank’s profit margins are severely affected. Banks have to work out new ways of doing business and make profits by strengthening their customer relations.
It’s been noted that the banks who have already invested in BI technology are gaining a competitive edge on their competitors. On exploiting the advanced capabilities of analytics and BI banks can:
• Gain opportunity to cross-sell services and products to all customers
• Reduce cost of collecting, formatting and polishing banking information
Though business Intelligence in banking is relatively a new idea, however, it has been embraced with open hands. And, it’s just increasing in its capacities. With each passing day, measures are being taken to make BI tools more robust, accessible, economical and attainable.
The banking CIOs are excited about investing in BI in future. Check out the Indian banks who have already been availing the benefits of Advanced Analytics and Business Intelligence.
Setting our Banks for Future with BI
The trick to effectively serve banks’ clients is by correctly utilising the information for offering them greatest value whatsoever times. Banks must differentiate their products and encourage customers to select them by highlighting how they are better. Plugging-in a Customer Relationship Management (CRM) applications can prove to be a fantastic idea alongside a nicely implemented BI solution.
For this, there must be enough coordination between the business and technology deployed. Banks and other financial institutions can surely unlock new horizons of company growth by efficiently utilising organisational data and thus gain valuable, actionable insights.