As computers get smarter using new creative digital technology such as Artificial Intelligence, financial institutions are now able to harness the power of advanced analytics to help them predict the future.
Using innovative technology, the way your bank proposes to reduce costs and upgrade your day-to-day banking experience. This new way of using databases with customer’s important details, working with the data produced by previous transactions will start to show improved service and other important benefits to banking customers.
This kind of technology is already being used to some degree in over 90 percent of the top 50 global banking organizations, according to research and a report on how banks are using this new kind of upgraded analytics by McKinsey.
These forward-thinking banking institutions have been using advanced analytics to help them gain deeper knowledge of their processes, the customers they already have and other potential markets.
This kind of technology is allowing banking organizations to become more competitive and have a leading edge over their contemporaries.
By using the information they have gathered previously by more traditional methods, such as basic data collection and reporting, they are able to use advanced analytics to predict the behavior of their customers.
Another two big benefits for banks of using this method is they are also able to understand the requirements and preferences of the customers, alongside improving their overall risk assessment strategies.
Larger benefits for the organizations using the power of this new kind of data technology is that financial institutes are able to use it to create integrated business decisions, which will also lead to greater profits and increased future stability.
Focusing on customers is essential for success as customer’s needs begin to grow within a more digital world. Banks need to keep up with innovative methods to build customer satisfaction as a key focus.
Building customer loyalty and retaining those customers is imperative, as traditional banking makes way for the more customer-centric digital banks which are now emerging who put the customer right at the center of their strategies.
Advanced analytics provides tools for finance companies to engage their customers while targeting them constantly. This targeting takes place not only when consumers enter a branch, but also for the growing number of customers who are demanding the convenience of mobile apps and online banking.
Experts at McKinsey.com are predicting that advanced analytics has the power to redefine the banking arena and is vitally important to the growth of the global banking world.
According to these leading industry experts, It has the capacity to totally transform banking and that advanced analytics is described as the new frontier in terms of the advancements possible with this type of big data management.
I think some banks will seize that opportunity and will be able to truly differentiate themselves using data and analytics. Examples I would use are some banks that in the early days used ATMs to truly create a competitive advantage for a few years. Some banks in the early days of the Internet truly created a differentiated position online for themselves.
“I think some banks will seize that opportunity and will be able to truly differentiate themselves using data and analytics.”
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.