How Business Intelligence coupled with cutting-edge technologies are transforming the Banking & Financial sector?
Business Intelligence (BI) can be held accountable for boosting up banking operations like spotting designs, analyzing networks, and solving blockers in real-time, etc. Major financial institutions have already started implementing BI and getting enormous benefits from BI technology. However, its full capability is yet to be unearthed.
The road towards successful BI implementation is not that smooth, the banks and financial companies face very hard times with a few prominent issues in its way. Two of the major roadblocks are the unstructured data and lack of capable resources with hands-on experience in gathering data, analyzing and implementing it for more business profits.
Future of banking with implementation of Business Intelligence
In the long run, to avoid significant loss and gain huge profit margins, BI solutions are very crucial for banks as they empower them with several techniques to identify frauds, reduce risks, and lowers operational costs and more. Currently the modern customers already introduced themselves to BI through firms performing in ecommerce, social media or app production spaces, they expect a similar type of user interface and experience through their financial and banking services providers.
Trending technologies that are transforming the way banking sector operates:
Artificial Intelligence (AI) with Machine Learning (ML) are the new trends in the banking industry. The huge potential of AI and ML together have helped banks to manage risks much efficiently, be compliant and save costs.
According to Goldman, “AI technology will deliver up to $43 billion in savings and revenue opportunities in the financial sector by 2025.” So, major giants in financial institutions are investing billions of dollars in AI technology.
Internet of Things
To acquire more and more customers and to retain them, these days financial institutions are implementing IoT (Internet of Things), using this technology they can stay ahead in the race. This technology has the potential ability to increase BI capabilities through various advanced ways like contactless payment methods, payment through wearables and more.
Also, IoT possess the capability of analyzing data combined through all such devices and thereby assisting the organizational business heads to focus on strategies for creating more revenue. E.g. IoT can help businesses like banks, retails and more to identify consumers individually and engage them through push notifications for promotional offers and discounts, thus generating maximum profits.
The banking or financial sectors are known to be the hub for storing private and confidential information of customers regarding various norms like KYC regulations etc. Due to this, there is a huge risk of frauds and other malware or spyware threats on banking and financial institution rises. Business Intelligence solutions provide excellent fraud detection technology in banking. BI platform supports cyber security, threat detection and prevention of fraudulent transactions through its highly advanced techniques.
Modern technology is rapidly changing the banking and financial sector, and there is lot more to come in the coming days. These institutions that embrace and implement BI solutions to tackle risk, increase operational activity, and deliver products and services that satisfy customer requirements will be better positioned to achieve sustained growth, profitability and a competitive edge for years to come.