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Data Analytics: the next move for transaction banking cont....

Business Analytics in Transaction Banking

  • Customer Analytics
  • Product Offering 
  • Risk Assessment and Mitigation plan
  • Regulatory Needs

 Customer Analytics

-          Financial Institution who offered Transaction Banking that understand their customers and their own ability to service them in more organized, profitable and differentiated ways by taking the advantage using modern analytical technologies.

-          Using modern analytical tools & technologies it is possible to harness existing, specialized transactional systems to extract valuable customer insights and develop customer analytic maturity.

-          To understand Customer characteristics like segments, geography, products usage, specific needs, liquidity inflow & outflow and their transaction volume. Any specific pain they are having and looking solution around that.

           Following actions needed here:

-          Analyse the above mentioned characteristics

-          Offered them the suitable business product as per their business need and liquidity flow

-          And Finally, Implementation of the product offered to maximize their revenue and profitability

Optimized Products Offering

-          To maximize performance, institutions need to determine which products generate the most profit, and which are valued by customers. This insight will enable banks to refine the product mix, and sunset lower-value and less profitable items.

-          Basis on past trends and analytics, financial institution to analyse the best outperforming product for the specific geography and segment  

-          Motivate customer to use the optimized (best suitable) product offering

 Risk Assessment and mitigation plan

-          Prepare a real-time or near real-time view of risk and concentrations in the portfolio by product, counterparty, geography and time period, and identify leading and lagging indicators and correlations. Create a governance and policy control framework for key performance measures to manage exceptions and proactively manage within tolerances.

-          Analyze transactions and market activity to identify trigger events, correlations and potentially predict transaction concentration and likelihood of execution weaknesses and interventions.


-          Have to make sure that offered product suffice the regulatory needs for that particular geography

-          It’s is flexible enough for the extensibility point of view so that regulatory changes can be incorporated and implemented smoothly.

Refer my earlier post for more detail..



Business Analytics

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