Your institution’s data is a veritable goldmine, but in order to really benefit from it, you must be able to fully analyze it. Enter business intelligence (BI) tools.
BI software gives your financial institution the ability to translate its available data into actionable business decisions, and makes it possible to use the information you already hold to better recognize customers at a personal level and bring them a targeted, individualized experience. The tools’ data analytics functions allow institutions of any size to reach and obtain information from different channels and silos, and provide a unique and differentiating experience to each of your customers.
Emerging Industry Trends
Investment in big data technologies continues to expand, according to a recent big data survey from Gartner, in which 73 percent of respondents—comprising 300 members of the Gartner Research Circle’s core of IT and business leaders—have invested or plan to invest in business intelligence solutions in the next two years, up from 64 percent in 2013.
The survey also indicates that organizations are becoming more strategic about their big data options: the number of organizations stating they had no plans for big data investment fell from 31 percent in 2013 to 24 percent in 2014. Finally, the results show that the most dramatic changes stemming from BI tools, in various industries, have centered on enhancing the customer experience.
Using Big Data to Serve All Types of Customers
And service is key, since one of today’s largest consumer segments—Millennials—are known for their desire for immediate resolution as well as personalized service and information. Millennials also tend to hold a different view of banking.
Instead of comparing their encounters with Bank “A” against those with Bank “B,” Millennials weigh their banking experiences against those they receive at retailers and other organizations, like Southwest Airlines or Amazon.
Millennials do still reach out to banks, but more so to gain financial advice, which is forcing branches to transform, to some extent, from transactional areas to consultative centers. And using analytics, financial institutions can answer their complex questions by accessing a variety of data.
3 Enterprisewide Uses for Business Intelligence
In addition, there are numerous practical applications for BI tools that can improve business practices across your entire organization. Here are three specific applications available to your bank:
- Detect and Prevent Fraud. Through analytics, you can better detect fraud and money-laundering patterns—in real time—by looking across your customers’ transactional information to spot and flag unusual activity.
- Set Deposit Rates. You can make better pricing decisions to help your institution get and keep deposits by combining BI software with your own historical data and insight.
- Perform Continual Stress Testing. Occasional stress testing is no longer sufficient. Your regulator wants your institution to demonstrate an awareness of its portfolios to ensure that no single area takes up too high a concentration. Analytics enable stress testing to occur continuously across the organization, ensuring greater efficiency and reducing risks well beyond the intermittent test.
Of course, these are only three of many applications available through data analytics. Also, analytics dashboards and analyses alone won’t increase profitability. Your institution must act upon the vital information these tools produce to efficiently derive answers and make strategic, profitable decisions.
CSI Can Help
CSI’s business intelligence solution, CSI IQ®, helps you turn data into actionable information that keeps you competitive in the financial market and continuously meets your customers’ evolving needs. To learn more, download our free white paper, Understanding Big Data with Business Intelligence Tools.
Jason Young, director of product management, oversees CSI’s robust suite of business intelligence solutions, including CSI IQ, Financial Dashboard and Relationship Pricing. Jason holds a diverse banking background, having served as a credit analyst/underwriter as well as a commercial relationship manager prior to joining CSI. His experience gives him a unique perspective on the impact data and technology can have on profitability and success.