Importance Of Business Intelligence in Banking and Finance
24 Jul. 2019 Data Analytics
Business Intelligence solutions are not new to the Banking, Financial Services, and Insurance (BFSI) domain. They help enhance the operations for banking and financial sector by identifying, analyzing, addressing and resolving issues in real-time and more.
Also, while many financial institutions have already started benefitting from the BI, the full potential of this technology is yet to be discovered. Real-time business intelligence makes information processing convenient and for decisions to be made faster with accuracy.
Through this article, we will cover the essentials of business intelligence in banking and financial industry.
Why Should Financial Companies Focus on Business Intelligence?
BFSI domain faces the challenges of rising competition, risk management, and changing customer demands. Business intelligence tools aid them to leverage customer data for deriving useful insights. They help with analyzing trends, identifying patterns, and equipped with real-time reporting. BI offers them with a flexible and transparent approach to make better financial operations and decisions.
How Business Intelligence Drives Profitability in Banking, Financial Services & Insurance Industry
Listed are some of the pointers that highlight how BI in banking & finance sectors offer a definite competitive advantage:
- Ease of Data Handling
BFSI services are supposed to generate and manage a vast amount of data every year. It includes information about customer behavior, needs, and preferences. BI solutions analyze and turn this data into actionable insights by aligning it with market trends. As a result, organizations can offer better financial services with the ease of data handling.
- Enhanced Work
Business intelligence in financial industry helps track the performance of various departments and employees. With this kind of information, organizations get insight into their business operations. Let’s take an example. Banks utilize business intelligence to determine customer needs and how their employees can respond to such demands. As a result, they can offer a better customer experience.
- Improved Customer Retention
BI tools help financial companies to identify and pinpoint the reasons why customers switch to the competition. Further, they can improvise and provide better products & services to meet the needs of old and new consumers. With this, banking institutions can reduce customer attrition and improve customer retention & loyalty.
- Risk Management
The finance industry is volatile with sudden and uncertain changes. BI applications in banking and financial sector provide fact-based actionable insights. It helps to detect and reduce fraudulent activities to minimize risks. A BI solution can ensure compliance with national and international regulatory standards.
- Real-time Reporting
BI in banking sector provides visualization of historical and current data of the company to identify customer behavioral patterns and potential blockages in the system. It offers visual cues to take necessary actions to achieve goals.
Read about the importance and advantages of BI applicable for various industry verticals.
State of Business Intelligence in Banking & Financial Industry
The adoption of robust BI applications in BFSI domain helps improve work efficiency while reducing operational costs. The future of BI in the banking sector is bright enough to provide sustainable growth and a competitive edge to the business.
Rishabh Software is a pioneer in Business Intelligence Application Development by offering customized solutions for banking, financial services, and insurance industry. We provide ready to integrate, self-service business intelligence tools. Through that, we help businesses to make informed & faster decisions.
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