Business Intelligence (BI) is responsible for enhancing the banking operations like identifying patterns, analysing connections, addressing and resolving issues in real-time etc. Many financial institutions have already started benefitting from the BI technology. However, its full potential is yet to be discovered.
Business intelligence solutions are not very new to the banking domain. It can be defined as a blend of tools, techniques and technology together performing functions, which otherwise would have been performed by humans. Through real-time business intelligence, processing information becomes convenient and decisions can be made faster with accuracy. As a result of BI, more positive business results are observed. Business intelligence and analytics, rather Artificial Intelligence (AI) is expected to surpass human intellect by 2019, as estimated by Google’s Ray Kurzweil.
However, the journey towards the future will not be as smooth as it appears. The banks and financial companies struggle with a few prominent challenges in its way. Two of the major ones being the presence of data silos and lack of experienced resources having hands on collecting data, analysing and applying it for business gains. A few other reasons too are depicted in the graph below:
There has been a surge in the popularity of analytics and BI in banking. This demand is an outcome of the changing business requirements as well as the range of competences IT can offer. The alarming growth of data in the financial sector, the rising inclination on technology and the cut-throat competition have added to the reasons why banks must embrace business intelligence.
Most of the financial services firms are still in the early adoption stage of Business Intelligence technologies. The others are yet to overcome the fear and risks of data silos, security concerns, proven track records, compliance and failure.
Business Intelligence in Banking – What does the future look like?
In order to stay ahead of the competition in a long run, BI solutions are imperative for banks as they enable them with capabilities to detect frauds, mitigate risks, reduce costs and more. While the modern consumers are being already exposed to BI through firms excelling in ecommerce, social media or mobile phone production spaces, they expect a similar type of (personalised) experience through their financial and banking services providers.
According to the results of IFC Survey in 2015, it was found that not all central banks have been using Big Data (or BI) yet. Check out these statistics:
These statistics clearly indicates that there is an immense scope of BI in the future as a lot many competencies still remain unveiled. Very soon, we will step into the world where all banks and financial institutions leverage the supremacy of business intelligence.
Beacon ACE – The ultimate BI solution for your bank
Sesame Software Solutions, Kerala has powered a one-of-its-kind business intelligence platform named Beacon ACE to service banks with futuristic technologies. It is designed to improve productivity and performance with each banking interaction. For details on how Beacon ACE functions and how it can be integrated with your bank’s existing processes, contact our team. We promise to help you with all your requirements and provide FREE demo upon request.