The financial services industry is undergoing significant change, driven by factors such as increased globalization, changing customer expectations, a volatile regulatory environment, and technological advancements. To deal with these changes, many companies are exploring FinTech – technological solutions to issues in the finance industry.
One area that presents a significant opportunity for finance and investment companies is financial data analytics. Advanced data analytics can help financial service companies monitor financial performance, identify areas for improvement, uncover new opportunities, and much more. Let’s look at how financial data analytics is transforming and improving the financial services industry.
Key Benefits of Financial Data Analytics
1. Reduce Risk
Financial risk can be assessed more accurately with access to the right data. Businesses use historical and predictive analytics to evaluate potential risks and monitor fraudulent activity. For example, tracking customer behavior data allows for early identification of potential problems, including fraud and delinquency, with a focus on prevention.
2. Improve Security
In the financial services world, security is a vital component that must be updated and maintained. Comprehensive high-volume data management helps to manage and improve visibility across complex data sources and improve the security of sensitive data throughout the organization.
Financial technology leveraging machine learning and artificial intelligence can also alert companies of fraudulent activity and data discrepancies in real-time. These security advancements remove the risk of human error and keep teams aware of potential security breaches.
3. Drive Profitability
Advanced data analytics can be used to drive profitability in a number of ways. Customer analytics can help to identify high-value customers, foster innovation for new product and services, and pinpoint growth opportunities. Operational data analytics can also help to streamline operations, improve the accuracy of financial assessments, and identify wasted spend to help control costs.
4. Manage Compliance
Regulatory conditions are constantly changing in the U.S. and throughout the world. Political volatility, cybersecurity, GDPR, consumer protections, and tracking and reporting requirements have changed the compliance function throughout the financial services industry.
Financial data analytics and professional data management can help financial services companies improve compliance monitoring by processing, organizing, and cleansing enormous volumes of data and streamlining analytics for accurate regulatory reporting.
5. Improve Customer Experience
Customer expectations are higher than ever, and meeting these expectations is critical to long-term success. A recent study¹ found that in the banking industry, customer experience leaders achieve approximately twice as many recommendations, new product sales, and share of wallet than their competitors.
Financial data analytics can help the financial services industry improve customer service by delivering personalized recommendations, provide robo-advisor and chatbots for advice and inquiries; as predictive analytics help to indicate future customer needs.
Harness the Power of Data with Data Management Professionals
It is important to choose a trusted data management provider with experience in managing complex and sensitive financial data. Data management service providers, like DataBrains, help to simplify and accelerate the consolidation of disparate data sources, deliver custom financial analytics dashboards and reports, and modernize data management with affordable and scalable cloud-managed service.
DataBrains’ FastTrack program provides accelerated implementation and Tableau data visualizations for instant access to impactful financial data analytics.
Contact DataBrains today to learn more about how advanced analytics can help financial companies reach their strategic goals.
Sources:
[1] https://thefinancialbrand.com/78131/cx-banking-customer-experience-revenue-growth/
