Highlights Banks must transform to fit in well with the Evolving Digital Ecosystem and Advanced Analytics will help them get to it with ease and precision… Or else … they will be losing out on their market share and profitability! This is What Banks Need Most to Be Transformational in the Digital Landscape Today’s banking […]
August 8, 2024
Banks must transform to fit in well with the Evolving Digital Ecosystem and Advanced Analytics will help them get to it with ease and precision… Or else … they will be losing out on their market share and profitability!
Today’s banking systems are getting more complex than ever. To overcome this complexity, banks must stay abreast of the best way to mitigate risks, enhance security systems, ensure regulatory compliance and meet customer needs effectively.
To launch the right products for the right customers in a secure, dynamic approach, banks must invest in certain frontiers that will pave their way towards success in the high-end digital future:
In the end, it’s all about innovation and precision risk assessment, which will directly impact your financial bottom line. To expand your opportunities and be transformational while reducing costs, there is no better way to differentiate and charge through your competition rather than by driving decision making through analytics. Advanced analytics is an indispensable tool for generating sales leads, carrying out risk management or revenue management. Not only does analytics redefine core functions, but it an essential tool when it comes to marketing, budgeting and planning your business in general.
By the year 2020, close to 40 trillion gigabytes of data is expected to be generated, be it tweets, Skype calls, YouTube videos or emails.Sifting through this data and listening is imperative to realize important insights and come up with targeted strategies for customer acquisition and retention. It helps banks accomplish accurate reporting and ensure regulatory compliance and project their system as profitable and competitive.
Clearly, this is not as easy as running queries on a database. It requires the use of advanced analytics – to address the variability and volume of available data.
Precisely, 96% bankers acknowledge that the banking world is witnessing the organization of a digital ecosystem. However, the downside is that 87% of the surveyed banks admit that their systems are not smart enough to flow with the digital tide.
Banks are losing out by maintaining a status quo and incrementally upgrading their analytics strategy to address a current need. Partnering and collaboration in conjunction with “agile, scalable systems” and “real-time data analytics” are the door to a successful, thriving banking business in the digital ecosystem.
Analytics directly impacts a bank’s market domination. It is rather critical for banks to change priorities and analytics approach and match their market position to currently prevailing trends.
The Banking Top 10 Trends 2016 report sheds further light on this aspect. Charging optimally for every service delivery is critical and suboptimal or overpricing is commonplace without the use of advanced analytics.A pricing decision which is not based on analytics will create the means to give away appreciable portions of their revenue pie to players even outside of their domain. Eventually, banks become less informed about their customer expectations and therefore less profitable.
In addition to becoming agile and adopting a service-oriented architecture (SOA), Advanced Analytics is one of the critical trends for banking success. It is a key factor that helps drive customer insights, curtail fraudulent activity and manage risks better.Banks need the intelligence that helps frame effective path-breaking strategies. Banks can take advantage of a number of analytics realms in prediction, visualization, simulation or optimization to address their specific business architecture needs and strategic requirements.
Banks must ensure that their digital strategy is not limiting to make the most out of data discovery from Advanced Analytics. Legacy infrastructure and the inability for effective data communication produce great obstacles.
The inability to address this and other surrounding constraints prevents banks from successfully breaking into the digital.
All this translates into better profitability and a drastic upsurge in the financial bottom line.
Is Advanced Analytics the answer to profitability woes in the banking sector in today’s disruptive digital dimension?
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