bankingciooutlook

How Banking Analytics is Transforming the Financial Industry

Banking CIO Outlook | Friday, October 01, 2021

Banks can use BI to measure business and employee performance and then use that data to create branch budgets and employee goals based on past performance.

FREMONT, CA: As per a recent Strategy Analytics survey of 450 companies worldwide, banking leads most industries in Big Data analytics. Banks use BI to reduce costs, increase profits, and compete on a local and global scale. The following are some of the ways in which BI can assist banks.

Automating Marketing and sales

With today's data volumes, banks can now gather previously unimaginable information about each of their customers. This provides them with a better understanding of their customers' needs and allows them to address these needs more proactively. It also enables various departments within a bank, such as marketing, sales, and information technology, to work more cohesively as a single unit. Banks, for example, can now combine BI and sales force automation tools to market products tailored to customers' current situations, such as building new homes, starting small businesses, or starting families, instead of pushing out products to all customers. In fact, financial services firms that used BI saw a 7 percent increase in cross-sell and up-sell revenue.

Innovation in Performance Analytics, Budgeting, and Product

Banks can use BI to measure business and employee performance and then use that data to create branch budgets and employee goals based on past performance. Furthermore, they can schedule training and education for these employees during off-peak hours and track progress toward goals in real-time. Banks can also use a feature, product, and service performance data to develop new offerings based on current customer demand.

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