Learn How Banking Analytics Is the Answer to All Your Banking Business Complexities
Drivers of Banking Analytics
Banking Analytics is foreseen to be the future of the banking industry owing to the increasing need for analytics for anticipating the customer’s needs and preferences. Banking industry experts perceive banking analytics to be a gift for them which is supplementing the growth of the banking industry. Management of huge amount of data in banks coupled with changing needs of customers is driving the need for banking analytics.
Expounding Banking Analytics
How Banking Experts define Banking Analytics?
According to banking experts, Its play a very important role in the penetration of the banking industry. As the banking industry is data driven as well as customer-driven, it requires to deliver 100% satisfied outcomes to their customers.
Different strategies and techniques adopted for analyzing the banking data for business information, operational efficiency, data mining, customer analysis, product benchmarking, data management methods, employee performance, and investment opportunities within the banking business can be defined as banking analytic. This is even used to identify new business opportunities and develop effective business strategies across consumer banking, commercial banking, retail banking, investment banking, and wealth management and also across the entire value chain of the banking industry.
What does a Banking Analyst do?
By the implementation of effective analytical tools and strategies, a banking analyst can fight frauds in banking to improve productivity, improve customer satisfaction and address the operational inefficiencies of the business. A banking expert can also analyze the prepayments, loan defaulters, cash flows, and portfolio risk and measure business opportunities. As banking is a data-intensive industry, banking analysts need to be updated with regulatory reforms, changing business models, new business opportunities, amongst others.
How is Banking Analytics creating value to the banking industry?
1. Long term customer relationship
Adoption of banking analytics enables banking professionals to build long term relationship with their customers through their smart and faster decision-making process. It can help them to come up with innovative and customized products for their customers which will supplement the growth of the banking business. As customers are getting smarter day by day coupled with their changing preferences and purchasing power, It helps the banking industry experts to provide customized & innovative solutions to their customers to build long term relationship with them. It is very necessary to maintain a satisfied customer otherwise it can create an adverse effect on the banking business and create losses.
2. Fraud Detection
Banking business being a data-intensive industry, it is very important to maintain the sensitive information of the customers and be aware of fraudulent activities. Bankers utilize banking analytics to detect cases of card fraud, deposit fraud. By the implementation of analytics in banking, it can automate the finding of fraud cases and increase the speed and effectiveness of monitoring fraud. Banking analytics plays an integral role in monitoring fraud and safeguarding customer’s sensitive information. Cases of fraud can result in losing customers and will slow down the growth of the banking industry.
3. Creates sales opportunities
Banking analytics will enable banking institutions to gather insights into customers’ needs and preferences, their buying behaviour to determine and focus their target customers, marketing campaigns, sales strategy, and business strategy. Insights into customers’ needs and demands will allow the banking institutions to develop innovative products and be more intentional about effective marketing strategy. Banking analytic expert helps to serve the customers with customized solutions which will create more sales opportunities, maximize the revenue and increase customer base.
4. Improve operational efficiency
It can help to identify the business inefficiencies of the bank. It can help to analyze the inefficiencies in bank account opening, products, and services which are least profitable and key performance indicators of the business. It can create a visualized report of the operational activities of a particular bank branch which will present the growth opportunities and improvement areas which can create true benefits of analytics in banking. After a clear picture of operational inefficiencies, the banker can start working of fixing them up with banking analytics.
5. Investment Management
Banking Analytics plays a major role in risk management of the business, portfolio management for the customers. This helps to regularly monitor the asset quality and capital adequacy of the bank. It helps to realize the ROI using predictive analytics for customers as well as business operations. It helps to assess the risk, drive revenue, cost reduction and identify investment opportunities of the business as well as suggest profitable investment products to the clients according to their needs.
ExpertsConsult Epilogue on Banking Analytics
ExpertsConsult, being an expert network firm provides insights into banking Industry and also connects you banking analytic experts to identify the challenges of the banking industry, market opportunities, customer handling challenges and operational inefficiencies. The banking industry is changing drastically and growing at a rapid pace with the implementation of various technologies, analytics and business strategies.
According to a survey and analysis of ExpertsConsult conducted with banking analytic professionals, banking analytics plays a major role in analyzing customer behaviour to increase the retention of customers. Performance tracking of bank branches and employees in real time is also possible through analytics. The banking industry is very risk sensitive as it comprises of millions of sensitive information of their customers. Loan management, predicting customer’s future needs is made possible through in the banking industry with the proper utilization of available data and banking analytic. Banking industry experts say that the most critical and crucial activity of banking business is fraud detection. It is very important for banking professionals against the fraudulent and criminal activity as this industry is very highly regulated. Fraud detection against payments, expense reports, account opening, false transactions, card fraud, and others can easily be solved with banking analytics.
Thus, banking expert’s foresee banking analytics to create a great value for the banking industry to be the future of banking business.