7 Ways That Data Analytics Can Transform Finance & Banking Sector
Customer analytics allows financial institutions to conduct more targeted sales and marketing, which in turn increases the likelihood of a transaction being made by your organization. Supporting upselling and cross-selling techniques, banking analytics helps salespeople offer goods and services that complement existing ones and add value to the customer’s banking experience rather than just taking a stab in the dark. Working with Maveric Systems, clients have discovered fresh ways to leverage their internal data analytics capabilities.
Seven Top Use cases for Data Analytics in the Financial Industry
- A complete picture of the client from every angle: Applying sophisticated analytics to information about clients, such as the banking products they already use or the family members, a lot can be learned about their motivations and drives. Sentiment analysis can also be used to know how clients feel about your business. By analyzing this data, services that meet the client’s actual requirements rather than assumed can be offered.
- First-rate interaction across all channels for your customers. Delivering the correct product or service appropriately – person, place, and time- is a prime example of customization in action. As a result of its ability to make customers feel seen, heard, and understood — all of which contribute to a better overall customer experience — personalization has taken off as a trend in the banking industry, with most customers ranking it as “highly important” in the current financial landscape.
- Banking analytics improves the client experience: By making internal operations more efficient, consumers are more willing to engage with banks wherever and whenever on the medium they want. To show respect for their time, this is the ideal approach. Let’s imagine a client is interested in applying for a mortgage. Keeping all necessary documents in one easily accessible location that can be accessed at any time during any interaction saves significant time and effort during the loan origination process.
- Bolstering client relationships: Creating better, longer-lasting relationships with clients by offering them the customization they desire, reflecting an appreciation of their time and effort. One of the significant problems facing banks today is customer attrition caused by friction experience and a lack of personalization. When it comes to losing customers, churn analytics is another tool banks may use to their advantage, thanks to advancements in banking analytics. Businesses can pinpoint problem areas by analyzing customer churn, develop hypotheses about customer attrition, and zero in on the most at-risk individuals or groups.
- More extraordinary skill in preventing and resolving potential dangers: Data analytics can be used in various ways to help financial institutions reduce their vulnerability to risk. For credit risk management purposes, for instance, customer analytics could categorize clients into subsets according to their propensity to make payments.
- Fraud Protection: Predictive analytics can also be used in banking to protect against fraud by identifying unusual consumer behavior based on historical data. Protecting the interests of the consumer and the bank is the goal of using sophisticated analytics for fraud detection and prevention.
- Reduce overall operating expenses: In the banking industry, there is an ongoing push to improve efficiency while cutting costs. Financial institutions have historically tried to solve this problem by reducing headcount, but this rarely gets to the root of the problem. To do this, banks need a long-term strategy, not a short fix. This is where banking analytics comes in.
Conclusion
Finally, Data analytics can be used to find new business models, which is especially useful in developing economies. The banking industry’s analytical findings, and customer analytics, in particular, may be helpful to other B2B or B2C enterprises, such as retailers and telecommunications providers. This could be accomplished by developing a new partner ecosystem, disseminating pertinent findings to partners, and identifying opportunities to pool resources to generate fresh commercial possibilities.
About Maveric Systems
Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.
Across retail, corporate & wealth management, Maveric accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.
With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.
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