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Need of the hour - Business Analytics in Banking

Now a days organization are looking out for means of effectively processing the unstructured data so that meaningful insights can be achieved and the results can be leveraged for better and intuitive decision making.

The data which gets generated from various sources inside an organization is of different kinds and in multiple formats, processing of this data and managing it is a key priority for enterprises. For this purpose, organizations are taking resort to analytics for better data-management capabilities and to closely understand customer needs, identify patterns, automate processes, make most accurate forecasts and suggest new products to the existing customers.

BFSI industry is one of the biggest adopters of business analytics. Economic instability, demanding customer needs and stringent regulatory compliances have created neck to neck competition for banks. Moreover, increased need of customer centric focus is fuelling the demand for analytics solutions.

Usage of Business Analytics in Transaction Banking

  • Designing dashboards to track the main performance metrics using set KPIs.
  • Utilizing a data warehouse to report trend and past performance.
  • Performing simulations to analyse various scenarios.
  • Using statistical methods to predict future occurrences and trends.
  • Mining data to discover new trends, relationships and patterns.
  • Experimenting to test previous decisions made and investigating the variance.

In this competitive era banks have progressively started realizing the value they can achieve through enhanced analytics capabilities and they are religiously working on the solutions possible to achieve the desired output and leverage the capabilities within.

Categorization of Business Analytics by BFSI industry

Categorization of Business Analytics by BFSI industry

Comments: (1)

A Finextra member
A Finextra member 29 September, 2016, 04:46Be the first to give this comment the thumbs up 0 likes

Good insight on the use of Analytics.

But there is a some disconect on the intended use of analytics in banking industry. People tend to use banks which offer more varied services and is upgrading the technology to the latest trends to mitigate security vulnerabilities apart from the normal interest rate and credit benefit which they offer. Banks are primarily meant for lending and borrowing money as per policy. It is only the online marketing platforms that needs user centric data to detect user spending habit to push more related product information to increase spending. Needless to mention the inherit danger of misusing the data of user on what he spends .It might appear that my views are sceptical but could not hold back.