Over the course of last two decades, banking sector has amassed huge amount of information about its customers. It would be apt to say that Indian banks are buried under a mountain of usable information but do not have the know-how presently for enhancing their business. Tools like Business Intelligence and Analytics can prove to be a lifesaver for banks by helping them make informed decisions and in catalysing the organisation’s success.
While in the previous times, banks have been reluctant in adopting the BI technology, after the 2008 recession, with stricter regulations in place, digital transformation and the need to fight frauds, investments on BI and Analytics in banking took a huge hit. However, only 8% of the banks remain at the highest maturity state in supporting digital innovation – IDC Survey.
Banks and financial institutions have been slow due to numerous reasons behind it. Few of them are listed below in this resource compiled by The Financial Brand.
Reasons why Banks are considering Business Intelligence
The upside of an efficient BI solution are plenty and banks and other financial institutions are realising the same, gradually. Here are the top 5 reasons why they are rethinking investments into BI technology.
1. Improving productivity
Unlike the traditional ways of collecting and storing data that involved manually gathering and analysing data to generate reports, business intelligence is a modern approach to save time and efforts in managing and utilising data. It helps in deriving the most-suited data for report generation in only a few clicks, thereby ensuring resource utilisation at best and adding more to their productivity.
2. Aligning goals and outcomes
Advance BI solutions help banks in forecasting feasible goals by keeping a track of relevant information while making it completely accessible for associated people. Further, it evaluates outcomes based on the goals that were assigned, thus ensuring accomplishment of what was aimed for within a stipulated time.
3. Enabling hawk-eye view
Business intelligence gives banks full control over people and processes by analysing the workflow and performance data across the organisation, and highlighting areas, departments, resources etc. that needs improvement. By this, the bank’s senior management and stakeholders can have a hawk-eye view of data, at a single place.
4. Understanding customer behaviour
The primary reason why banks want to invest in BI and analytics is to understand the modern-day customers and their behaviours. The technology help marketers analyse the dynamic consumer buying patterns and then develop and promote relevant, need-based products/financial services accordingly to gain larger business.
5. Transforming data into insights
A good BI system acts as an extensive analytical tool that puts data in a presentable, understandable and useful manner before the bankers so that they can make future strategies from it. It helps in relating data and connecting the most appropriate information in a right way to expand business scope.
Need more reasons to implement a comprehensive Business Intelligence solution in your bank? Call us today!