Business Intelligence solutions are not new to the Banking, Financial Services, and Insurance (BFSI) domain. They help enhance the operations for the 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 the banking and financial industry.
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Currently, over 2.5 billion gigabytes of data is generated globally daily. With financial companies putting their data to work, they can gain actionable insights for a competitive advantage. In addition, with business intelligence tools being leveraged, bringing disparate data from various applications creates a unified source of information that anyone in the company can utilize.
BFSI domain faces the challenges of rising competition, risk management, and changing customer demands. BI 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 a flexible and transparent approach to make better financial operations and decisions.
Listed are some of the pointers that highlight how BI in banking & finance sectors offer a definite competitive advantage:
1. Ease of Data Handling
For any banking institution to remain competitive, it must constantly adapt to evolving customer needs. BI solutions analyze and turn the data into actionable insights by aligning it with market trends. This includes information about customer behavior, needs, and preferences As a result, organizations can offer better financial services with the ease of data handling.
We at Rishabh, make use of business intelligence & data visualization tools like Power BI to determine;
2. Enhanced Work
Business intelligence in financial industry helps track the performance of various departments and employees by analyzing throughput volume, service delivery cycle time, error rates, service quality CSATs. 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.
Rishabh offers data visualization services that provide insights via visual dashboards to help decision-making. They help spot trends, track business goal achievements & comparing the performance across categories – products & services. All this enables financial institutions to get intelligent insights across multiple areas like sales, marketing, cross-selling, and compliance in real-time.
3. Improved Customer Retention
BI tools help financial companies to identify and pinpoint the reasons why customers switch to the competition. They reveal what the customers want – an easier way to track income & spending patterns. With this, companies can improvise and provide better products & services improving customer retention & loyalty.
All of this means delivery of seamless customer experience via –
4. Risk Management
The finance industry is volatile with sudden and uncertain changes. BI applications in banking and financial sector help to detect and reduce fraudulent activities to minimize risks. A robust BI solution can ensure compliance with national and international regulatory standards.
Our team has the proficiency to build custom BI applications integrated with analytics capabilities to efficiently identify, measure, track and analyze operations. With a complete range of reporting templates, the financial institution can create and extract real-time reports, graphs, tables & dashboards to monitor performance in real-time. Some of the essentials include;
5. 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. With real-time visibility into operations, they offer the right insight across use of resources, teller performance, use of counters, wait times to get a live snapshot of appointments. It offers visual cues to take necessary actions to achieve goals. This data can be filtered by location, bank branch, products, offerings & transaction types to identify the areas required for maximum effectiveness.
Our team helps provide end-to-end visibility by empowering banks with custom BI solutions that;
Read about the importance and advantages of BI applicable for various industry verticals.
Rishabh enables banks to become more data-driven in every decision and hence increase profits
1. Fraud Analysis
According to a global banking survey published by KPMG, financial frauds have increased both in volume & value. This has made fraud detection and prevention the top priority of every bank.
So when a Canada-based credit union bank turned to Rishabh Software to develop a robust fraud management system, we delivered an advanced risk prevention BI framework. It enabled the client to support 1 million transactions per second with 100% accuracy!
Beyond delivering a faster, safer, and convenient experience, the solution also:
BI solutions help conduct a win-loss data analysis to predict acceptance rates for upcoming cross-selling initiatives. An Asia-based financial services institution wanted to increase its revenue through cross-selling insurance policies. For this, they needed an intelligent solution that could:
The created Business Intelligence & Analytics help desk designed for the customer helps:
It helped increase the conversion rate and revenues while reducing the incurred costs on expensive statistical tools.
Advanced business intelligence platforms like Tableau, Power BI, and more are transforming the financial services sector. Going forward, we would witness more banks and NBFCs implement BI solutions to boost productivity, manage risk & design customer-centric offerings. They will be better positioned to enjoy sustainable growth.
As an experienced business intelligence services company, we specialize in building and implementing BI solutions across industries. Based on our experience with several successful implementations globally, the application of BI in financial services helps optimize all the processes that are discussed in this blog.