Banking is an industry with a lot of data and it’s essential for business to operate smoothly, from accounting to compliance to customer relationship management. Here’s how banks can use predictive analytics and data visualizations to gain actionable insights from data.
Banking is an industry filled with data. It also has its fair share of economic, regulatory and technological challenges. For a space with so much information, a strong analytics tool is essential to operations, from accounting to compliance to customer relationship management and beyond. Yet, only 41 percent of banks leverage the power of predictive analytics and data visualizations to transform their information into actionable insights. Here are just a few examples of the impact analytics and mobile technology can have on the way banks do business.
Financial Reporting is Streamlined
Senior management needs access to decision-making data. With mobile apps that put the right information at their fingertips, areas like profitability trends, liquidity, and risk can be quickly identified and dealt with before they become problems. Critical financial information can also be viewed in a secure and personalized way by every employee, ensuring company-wide data integrity. By leveraging this information, employees throughout the organization can more efficiently manage their daily tasks, make better strategic decisions, and more effectively collaborate with colleagues.
Compliance and Auditing Departments Become More Efficient
In many cases, regulatory requirements account for a large chunk of a bank’s total operating costs. In the US, three out of five bankers reported that 10 percent of their budget went to such efforts. However, when banks can smoothly identify, analyze, and report on regulatory- and disclosure-related issues, the efficiency of their compliance departments goes up, and costs go down.
With powerful analytics on their side, banks can identify previously overlooked issues with statements or transactions, track and report on suspicious activities, and easily pull up the status of core compliance-related processes. Overall, this simplifies account reconciliation and lets compliance teams spend their time—and the bank’s operating budget—in more productive ways.
Customer Loyalty Gets a Big Boost
Banks can also leverage analytics to ensure customers get what they need so they stick around for years to come. With one out of three customers purchasing a competing bank’s product every year, taking a data-driven approach to customer loyalty is more important than ever before. When everyone—from executives and wealth advisors to retail branch employees and commercial bankers—has constant access to customer data, it becomes easier to identify new opportunities and drive incremental revenue from longstanding customers.
A holistic view of customer profiles and activities is essential to understanding how to increase profitability. Without analytics this is, more often than not, a guessing game. With analytics, banks can view information about customer segments, attrition predictions, and responsiveness to marketing offers. They can also identify potential risks with credit card and loan applicants and pinpoint the ideal times to promote mortgages and IRAs. In short, analytics gives banks the tools to deliver truly personalized services.
Wealth Advisors Deliver Superior Performance and Service to Clients
Another aspect of client service that gets a boost is asset management. In an industry where things can change at a moment’s notice, it is important to ensure that wealth advisors have constant access to up-to-date market and business news, as well as client-related information. Mobile apps allow wealth advisors to integrate relevant information, analytics, and processes into a single tool so they can manage clients, develop financial plans, and seamlessly create proposals. They can also receive alerts for client events, or changes to portfolio valuation and stock prices. With these mobile tools at their fingertips, advisors can rebalance assets, capture client information, and submit approval signatures securely, efficiently, and wherever the job takes them.
How has your company leveraged analytics and mobile technology for smarter banking? Tell us about it in the comments. And click here to learn more about how banks can leverage the MicroStrategy platform.