Business intelligence for Banks

Why do business analyst need banks?

During the period of development of the banking industry in Ukraine, the number of branch networks increased, as a result of which the volume of transactions grew to such proportions that manual operations became time-consuming, inefficient and with high error rates.

Currently, for servicing operations, most banks and financial institutions use specialized software, the main function of which is to automate processes and generate statistical reports that display actual figures of past periods and are ineffective for making management decisions. In such cases, the business analyst will be the best solution to improve the competitiveness of the business.

Business Intelligence tools can be used by banks for in-depth analysis of transaction history, planning financial results, analyzing business performance, measuring employee productivity, automating sales and sales, product innovation, customer profitability, regulatory compliance, and risk management.

In addition to an integrated understanding of historical data, BI systems also allow banks to predict future customer behavior and key performance indicators. Business analytics allows you to model customer behavior - not only in terms of using new services, but also in terms of potential risks.

Basic business intelligence solutions. S2B BI banking

 What will get the bank in the basic package S2B BI banking

Probabilistic models

Probabilistic models with which you can predict the elasticity of demand for banking products, which will give an opportunity to form prices at which you can get the maximum revenue at minimum cost while maintaining the positive dynamics of customer base growth.

Customer segmentation

- on loyalty to the company (how long and how often they use the services of the company and what services). It will be useful for the formation of individual loyalty programs in order to retain and augment the customer portfolio;

- by client profile (for example, the formation of the profile of an ideal borrower and a malicious defaulter). It will be useful for the development of new banking products;

- by sales channels (identification of the most effective sales channels).

Abnormal transactions

Identify system anomalies in transactions to prevent abuse and fraud, identify business process inefficiencies and increase security.

Sensitivity analysis

Allows mathematical modeling to identify factors or groups of factors that in one degree or another affect the financial results. For example, seasonality, cyclical marketing campaigns, the frequency and method of communication with the client.

Customer behavior

Probabilistic models of customer behavioral factors. Understanding the general trends will allow you to more effectively implement the strategy, and anticipating customer actions will provide an opportunity to improve communication and improve the quality of marketing.

Trend detection

Using the imposition of external economic factors on operating data for a long period of time, one can determine general trends. (For example, does the price of petroleum products affect the share of loan returns and how much does it affect? How does the dollar rate affect the quantitative indicators of clients' investments in national and foreign currencies, etc.).

Business intelligence for insurance

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Saturday, 20 April 2019

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