Advanced analytics enables superior performance in organizations that are willing to make the proper commitment with the right tools and software. Companies across all industries that are analytically driven experience financial growth that is much higher than their competitors.
Fremont, CA: Banks record an enormous amount of transactions each day, and these entries are real-time in nature. Capturing and recording these massive chunks of data can be a challenging task for bankers. This gave to the rise of banking analytics. Sophisticated big data analytics software, which powers banking analytics, helps banks provide a platform where transactions can be recorded and analyzed systematically. Advanced analytics enables superior performance in organizations that are willing to make the proper commitment with the right tools and software. Companies across all industries that are analytically driven experience financial growth that is much higher than their competitors. Here are a few ways in which banking analytics can help the banking sector.
Fraud Detection
Fraud has become a significant area of concern in every sector, especially among banking and financial firms, where it can cost them a lot of money. Digitization has paved the way for cybercriminals to commit more complex fraud that cannot be detected easily by traditional banking security technology. Banks require intelligent tools and systems to tackle this new generation of criminals. Predictive analytics, machine learning, big data, data mining, and stream computing are some of the key tools that have emerged in an attempt to improve baking security and tackle identity fraud. Analysis can help identify frauds that are not the most obvious. Data from such cases can be used by predictive analytics tools to establish a pattern and prevent future incidents.
Consumer Acquisition and Retention
Predictive analytics helps in the process of optimized targeting, making it easier for banks to instantly identify high-value customer segments most likely to respond to their services. Customer bases can be expanded by zoning in on acquiring the right kind of customers. Studies have shown that banks that leverage predictive analysis have recorded a 10 percent increase in new customers every year. Customer retention is another aspect that banks need to focus on to reduce customer losses. Loyal customers need to be rewarded, and customer attrition needs to be minimized. Predictive analysis helps identify which customers are willing to switch to any other bank and the reason behind their decisions.
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