Some of the top applications of business intelligence in the banking and finance industry are enhancement of operational efficiency, improvement in products and services, and much more.
Today,
technology is fast transforming all industries and the banking and finance industry is not an exception. With the rise in the use of the internet and the high penetration of mobile devices, financial institutions are now facing the mounting pressure of meeting the evolving demands of their clients in a dynamic environment. However, there are now some powerful tools driven by technology. Business Intelligence (BI) tools are one of such tools that the banking and finance industry is leveraging. Let’s have a look at the top applications of BI in this industry.
Enhance operational efficiency: To overcome the pressure of an ultra-competitive marketplace, banks and financial institutions are using BI for analyzing their operational processes and to remain efficient as far as possible. This also helps them to reduce their ongoing costs and maximize their available resources.
Improve products and services: BI tools analyze the voluminous amount of customer data and offer useful insights about the customer behaviour, their needs and expectations that in turn help the banking and finance industry to improve their products and services. For example, after analyzing the customer data if a BI tool offers this insight that customers desire more timely alerts or the less complicated loan application process, it becomes easier for organizations to make desirable improvements accordingly.
Improve marketing: With business intelligence, marketers in the banking and finance industry ably analyze their customer relationship management (CRM) data to identify the profiles of their most profitable customers. Analyzation by BI also helps in revealing up-sell opportunities and executing more targeted marketing campaigns.
Boost customer retention: BI applications can excellently identify the most profitable customers by analyzing the voluminous data of banking and financial institutions. This helps these institutions to pursue those customers and take measures to retain them. They have now quite understood that expectations of customers have changed over the years and now in-person meeting is not the most preferable way to reach or engage their clients. They must devise new ways to engage them by using technology.
Develop new strategies: Banks are now increasingly developing new investment strategies based on the rare data insights offered by business intelligence solutions or tools. In fact, some financial institutions are inventing a whole new category of investment strategies based on these insights.
Reduces risk: It is well-known that the financial world is witnessing a continuous change and by using the actionable information revealed by business intelligence, banks become more empowered to reduce possible risks by identifying fraudulent activities.
Thus, there are several applications of business intelligence in the banking and finance industry. As tools driven by BI usually features an intuitive dashboard that helps in visualizing the data, it becomes a lot easier for institutions to improve their overall operational processes and track their performance. Many of these business intelligence tools are now affordable and user-friendly even for small and medium-sized industries. So, no wonder, financial institutions are now widely adopting business intelligence and getting benefitted by the same in myriad ways to get a competitive edge.
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