The term ‘Business Intelligence’ has become buzzword in the digital communities with the advent of big data and data analytics. Business intelligence (BI) is nothing but knowledge about your business. The knowledge that you get through a technology-driven data extraction process which in turn helps you take clued-up decisions. For example, banks can interpret the transactional data of customers and develop right services or products around their expectations and needs. In this article, I am going to discuss how banking institutions are making use of business intelligence and achieving competitive benefits. Read on.
USES OF BUSINESS INTELLIGENCE IN BANKING
Enhanced Operational Efficiency
Banking and finance sectors are highly competitive and hence being efficient has become a key success factor for financial institutions. Application of business intelligence (BI) assesses the operational processes which help in optimizing existing resources and reduce costs as well. For example, evaluation of the performance of bank’s frontline staffs such as ‘tellers’ can identify the ways to achieve maximum customer satisfaction.
Efficient Marketing Activities
Applying BI, it is easy to identify the profile of most profitable customer by obtaining CRM data and analyzing it. In addition, the entire customer base can be evaluated to design more targeted digital marketing campaigns.
Helps Determine Profitable Products and Services
Business Intelligence (BI) tools help financial companies to track down specific revenue streams and identify the most profitable products or services. Moreover, it enables financial institutions to gain insights on customer expectations and customise products of services accordingly.
Big Data Analytics
On a daily basis, banks generate vast amount of data that necessitates the inclusion of ‘big data’ analytics in their core strategy. Big data intelligence aids in getting deeper insights of the available data using artificial intelligence (AI) based solutions.
Banks and financial institutions can make use of BI tools to learn the drivers that made customers switch to a competitor. This knowledge helps them devise ‘customer retention’ strategies. Getting hold of customer behaviour, needs, preferences and habits; also aid financial companies to tailor-made products and services in different ways and promote customer loyalty by resolving existing issues.
With the application of right BI tools financial institutions can get fact-based information which helps reduce risks. Using business intelligence, banks and financial companies can effortlessly control the fraudulent activities and mitigate risks effectively.
Overall, to make BI work for banks, a promising, highly secure and self-service solution is needed. The solution should be able to bring together all the different fragments of data from complicated financial records and use it to bring customer satisfaction. Cockpit BI
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