How Data Analytics is Helping Banking
Systems
Banking and Financial services are considered as the newest clients of Data Analytics, and probably this is because of the fact that banks tend to keep their data confidential. But now they have realized that with the help of data analytics, they can work with the Big Data and use it to increase their business and provide better services to their customers. As an estimate, more than 40% of the banks are ready to embrace data analytics in their systems.
Advantages of Data
Analytics in Banking
a. Risk Management: Banking systems always
have the risk of losing money when they give out loans. With the help of
analytics tools, they can keep track of which of their customers is going to pay
back the loans and which ones are going to mess up. Keeping track of behavior
and purchasing habits is also easy through Data Analytics.
Banks can also assess the future trends of the market based on the data and
decide if they need to increase or decrease the interest rates.
Data analytics also help in reducing the errors of data entry and identify
problems in consumers’ data.
b. Reducing Frauds: Banks are the most
fraud-prone industries in the world. Every year, billions of dollars are lost
because of frauds. Data analytics can help banks in detecting the suspicious
transactions and they can take action in advance to stop such activities.
c. Tracking Consumers’ Behaviors and
Personalized Service: Not everyone’s financial goals are the same, and so
this is important for banks to understand the conditions and goals of every
customer in order to bring them the right service and investment solutions.
Data analytics can also help the banks in categorizing their customers and
focusing mostly on those who are going to be prospective for them.
d. Engagement of Employees: Employees are
one of the most important pillars of any industry, and it is very important to
identify the best employees and take measures to increase the efficiency of
poor workers. Data analysis can help in analyzing employee performances.
Companies can identify the best performers and praise them while helping the
worst performers in improving their productivity. This is also helpful in
reducing employee attrition.
e. Regulatory Compliance: According to the
surveys, regulatory compliance is the biggest worries of as many as 68% of
employees involved in the banking industry. The advanced BI tools can help in
keeping track of regulatory requirement and they can scan through each and
every file to check if they meet the compliance or not.
Scope of Data
Analytics in Banking
Data analytics is having a big impact on all the major industries, and banking is one of them. According to Harvard University, no industry can ignore the importance of Data Analytics. Banks and Financial institutions need data professionals in large numbers, but currently, there’s a huge scarcity of data professionals. This, however, is good news for those who have appeared in this field, as the opportunities are endless.
Resource Box
The entire form of how we see Banking is going to change in the coming times and the best way to keep pace with the changes is to lead the change. If you’re looking for a high-paying job in the banking sector, then enroll in this Data Analytics course in India today.
Click
here for more information
Source URL: http://whazzup-u.com/profiles/blogs/how-data-analytics-is-helping-banking-systems
