Why Banks Cannot Do Without Custom Analytics and Big Data ?
Banking institutions have experienced a forcefully disruptive wave, a new paradigm in customer centricity, risk management, and market domination. Financial service providers who want to remain competitive must expand their perception of flexibility and scalability and arrive at meaningful insights through Custom Analytics and Big Data.
While Banking institutions have realized that truly meaningful decisions rely on highly relevant information, the struggle for the perfect Analytics solution continues. In order to remain at the top of the competition, financial Institutions must deploy Custom Analytics and Big Data Solutions with total flexibility, making way for data to evolve over time.
Why Banks Must Change their Current Position to Align with the Industry-Wide Change ?
According to PwC insights, 61% bankers consider that customer-centricity is important for their business model. However, less than 20% bankers are prepared for it. Further, Retail Banks believe that customer retention and regulatory compliance are their two major challenges to be dealt with prudently, for long term success.
Banks are investing more time and resources than ever to rework a number of facets in their core business models:
- Customer centricity, developing better customer insight and managing customer experience
- Managing risk, sales, channel performance, and marketing
- Addressing regulatory reform and its effect on the business environment
The challenge faced by banks does not lie in collecting data, but in determining whether data is consistent, trustworthy and accessible. Furthermore, banks need to build a strategy to churn the meaningful information they need from the available data by deploying the necessary frameworks that directly affect their bottom line.
What Can Banks Achieve Through Custom Analytics and Big Data Insights ?
Information assets available in Banks need more leverage so that meaningful insights can be extracted, about the mechanics of the industry, and basic entities involved, in the banking sector. In this context, it is only prudent to continually evaluate markets, channels, regulations and competitors and customers, suppliers, employees, and products. In order for financial institutions to lead the way, they must rely on insights derived from data that is available both inside and outside the organization.
Banks are assessing and processing their data to evolve dramatically towards a path to customer centricity and profitability, while also impacting their efficiency and effectiveness, and developing risk strategies. These information landscapes created by thorough data crunching using Custom Analytics and Big Data solutions hold immense business potential to:
- Deliver unmatched cost and risk management, and help the financial institution establish noteworthy milestones as an innovative enterprise.
- Center focus on customer as the prime goal of the enterprise, increase customer retention, identify high-potential markets and customers. Create and imbibe a thorough strategy for marketing.
- Monitor variables including regulatory compliance, fraud management, and operational efficiency.
Banking institutions willing to invest technology and resources towards a planned process of analyzing their data will make it to the top through consistent experimentation and a continual culture of learning for fresh insights.
What Key Differentiators Will Ensure the Success of Financial Institutions in Future ?
Over time, banks will rely on Big Data and some of the most intuitive Analytical solutions including machine learning for data-driven decision making. In this way, banks will enable themselves to position themselves better than any other competitor when it comes to decision making, be it quicker risk assessment, or understanding customer behavior.
Financial institutions will increasingly rely on their strategic alliances for deploying Big Data Analytics services through professional research-based insights. In future, banks will need to deploy a predictive process and the ability to experiment with the hypothesis in order to drive decision making. Banks will need to drastically change their core business processes to integrate this strategic decision-making ability.
The next generation of successful financial services institutions will only emerge based on the involvement of meaningful data and analytics in decision making. Informed customers who are interested in targeted investments will only choose financial institutions that employ analytical and calculated decision making, whether it is about managing risks, costs or modeling business behavior.