Business intelligence is used to derive insights from data and helps in decision making. Make the most of big data to understand customers and improve their experience with the financial company. Let’s discuss how C-level executives can use BI tools to achieve their goals.
The Banking, Financial Services, and Insurance industry has changed over the years and is now leaning towards the customer-centric model. The increase in competition, the unexpected losses, and the changing trends in the market are some reasons for this development. The C-suite executives have a huge role to play in streamlining the banking operations, increasing revenue, and enhancing customer experience as they are the decision-makers in the establishment.
Providing customers with a worthy experience has become essential for a financial company to establish itself and become a popular name. However, achieving customer satisfaction is not possible without knowing what customers want. This knowledge comes from the data collected by the institutions.
That said, raw data is of no use unless it is cleaned, processed, and analyzed using data analytics tools. In short, financial institutions need advanced tools to adopt the data-driven model. The tools and the processes come under business intelligence. Financial establishments mostly hire the services of offshore BI consultants to build the data-driven model and implement the necessary tools like Power BI for data analytics and reporting.
A financial establishment with noteworthy customer experience is proof that it has everything under control and is at the top of the game.
Business Intelligence is a technology-based process used by business organizations to collect, clean, store, streamline, and analyze large volumes of data in real-time. Business intelligence delivers high-quality and accurate insights used to make business decisions. Data mining (collecting data from multiple sources), predictive analytics, and data visualizations (reporting) are an integral part of the business intelligence process.
There are several BI tools in the market. For example, Microsoft Power BI and Tableau are well-known tools for business intelligence processes in various industries. The BFSI industry relies on Power BI for financial, operational, and marketing purposes. This certainly doesn’t mean that BI is only limited to the banking and finance sector. Let’s look at some of the benefits of using business intelligence in banking and financial companies.
Business intelligence has a prominent role in customer experience. CEOs, CFOs, COOs, CTOs, etc., can use BI tools like Power BI for the following:
The executive leaders don’t need to wait days and weeks to access data reports. The reports are automatically generated in real-time and shared using the dashboard of the BI tool. They can export the reports to other applications and send them to team members, management, etc., whenever required. Why spend hours of your time creating reports when you can set up the process and let the software do the rest?
Structured and unstructured data from multiple sources (social media, call recordings, emails, messages, surveys, feedback, etc.) is collected in a centralized database. This data is cleaned and analyzed to derive insights to get a complete picture of a customer (to build customer profiles). This helps create better financial products, plan marketing campaigns, and convert more leads into customers. The chief executives don’t have to rely on outdated reports or past experiences to determine the best way forward. They can use real-time reports to target the markets and capture a larger customer base than the competitors.
The C-suite executives have to work in tandem with teams from sales, marketing, and financial departments in the establishment. From setting up the budget for customer acquisition to allowing the sales and marketing teams to brainstorm and share information seamlessly, BI tools help create a healthy environment in the organization and promote collaborations between employees and stakeholders.
The metrics and data thresholds of BI tools act as natural triggers for automation. You can establish workflows and campaign timelines and schedule customer meetings based on the analytics. When you contact a prospective customer at the right time in the right way, the results will be favorable for your organization. Business intelligence gives you the necessary information to identify the best course of action and helps automate the processes.
It’s no surprise that customer demands change based on geographical location, market trends, and demographics. By predicting the changing conditions and demands, banks and insurance companies can offer financial products useful for customers and thus increase their market share. You can conduct surveys and use beta groups to study potential customers in new/ unknown markets.
Root cause analytics is where you identify the actual cause for a problem at hand. This is done by analyzing relevant information (historical and real-time) for the adverse condition you need to overcome. Business intelligence tools like Power BI can quickly process big data and generate data visualization (graphical) reports about the reasons for the problem/ adverse condition.
One of the toughest tasks the chief executives face is to convince the topmost leadership and other chief executives about a campaign, an investment, or a decision. The reports generated by BI tools help present data clearly for the leaders to understand the potential of a project/ campaign and the expected ROI. Since the reports are generated using data analytics, it becomes easier to make decisions that impact the organization.
Chief executives need to stay one step ahead and filter the leads to minimize the risk of attracting fraudulent customers. Identifying who/ which group is likely to commit financial fraud or misuse services will help banks cut down losses. Be it unpaid loans or vanishing customers, the financial establishments have to handle various types of frauds and find ways to overcome the losses.
Integrating BI tools with data sources and existing apps will help in running automated analytics and sending alerts to the respective employees when there’s a possibility of a fraudulent transaction
The ultimate goal of a financial establishment is to build strong customer relationships and promote brand loyalty to prevent customers from using the services of competitors. BI tools like Power BI are integrated with CRM systems to create individual customer journey charts and personalize services for each customer/ customer segment. Identifying the behavior patterns is necessary to inspire customer loyalty and increase customer retention.
Using business intelligence in the BFSI industry enables establishments to increase returns, profits, and customer experience.
Business intelligence tools provide access to clean data at any given point in time. You can retrieve data from the centralized database or access the BI reports through the dashboard to make important decisions. Running analytics on clean data will give you accurate insights and predictions. The chief executives can be assured that their decisions are based on solid reports derived from clean data.
Data visualization is the process of presenting insights in graphical formats. Line and bar graphs, pie charts, heat maps, treemaps, etc., are used for reporting. Each element in the visualization is clickable and will provide a detailed report in real-time. The C-level executives can access the visualization reports anytime and from any device. It is easy to get the micro and macro picture of the situation and use them for day-to-day operations.
Duplicate and inconsistent data are also identified and deleted from the database to prevent inaccurate predictions and analytics. Business intelligence helps identify the weak areas in the banking/ financial services and find ways to overcome the situation. Chief executives can work on strengthening the weak areas of the financial company to give a tough fight to the competitors and add value to the business operations. This will improve brand image and bring more customers.
It’s crucial to measure the performance of the establishment at every level. The micro and macro reports together provide the complete information to determine whether the financial company will achieve success or face losses. Power BI is useful as a performance management tool and helps measure operational efficiency and employee performance.
Building a resilient, agile, and sustainable financial establishment is vital to gaining trust and customer loyalty. Since many financial institutions have a global presence, building an agile establishment with streamlined internal operations and a supply chain network is even more necessary. The establishments should be prepared to handle and survive local, national, and global disruptions.
Using business intelligence in the BFSI industry requires expert Power BI consulting services from experienced solutions providers. DataToBiz works with banks, insurance companies, and financial establishments to adopt, implement, integrate, and customize BI tools to meet the requirements.
The experts help align goals with KPIs, measure the results, and derive actionable insights. We assist banks in optimizing resources and increasing returns while preparing them to tide over adversities. Talk to our team to lead your organization to success.