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7 Ways Financial Institutions Can Benefit From Data Analytics
There is a pervasive data conundrum throughout the financial services industry. Financial institutions have an inordinate amount of data, but there remains incredible, untapped opportunities held back by antiquated and siloed data solutions.
In this article, we’ll discuss the benefits of data analytics and why it’s essential for financial institutions to invest adequate time and resources into finding the right solution.
Benefits of Data Analytics
- Save Valuable Time
The oft-quoted aphorism ‘time is money’ rings true for your institution. Fortunately, an investment in data analytics streamlines operations and saves you time. The right data solution organizes data, creates visually compelling dashboards, and frees up the gray space in your organization. You can quickly find what you’re looking for and reduce human errors that take major costs to fix. Your employees get more time in their day back, and they can focus on the tasks that mean the most to your institution’s success. Instead of organizing and sifting through data at their desk, employees can spend more time making strategic decisions and communicating with customers or members.
- Secure Compliance and Risk Management Features
Data analytics improves the overall security of your institution. The regulatory environment for financial institutions is complex, and regulatory non-compliance leads to major fines for FIs. Data analytics incorporates technology into your compliance and risk management processes. This technology improves the security of your bank by reducing the likelihood of human error and quickly detecting potential cases of fraud for your customers or members.
- Increase Visibility
Data silos in financial institutions are a result of outdated data solutions. Miscommunication and misinformation can spread when only a few people or departments have access to the full set of data. Data analytics solutions, such as enterprise dashboards, give financial institutions the ability to see their full institution clearly. When everyone has access to the same information, whether it be individual branch performance or loan reports, it improves customer service, internal communication, and overall efficiency.
- Cut Down on Costs
There is a high cost of bad data. Bad data can be inaccurate, duplicative, incomplete, inaccessible, or unusable. If your FI isn’t storing or managing collected data appropriately, you could be wasting valuable company resources. Beyond data management costs, your financial institution could be incurring bad data costs through inconclusive, expensive marketing campaigns, increased operational costs that distract employees from important initiatives, or customer attrition. Bad data can have many negative impacts, but an updated enterprise data solution keeps employees up-to-date and can reveal new growth opportunities.
- Create Detailed Customer Profiles
All financial institutions want to know their customers or members better. Data analytics helps generate detailed profiles that reveal valuable information such as spending habits and channel preferences. With these profiles, you can create highly specific segments and pinpoint timely cross-selling opportunities. With the right data solution, it’s easier to gather actionable insights that improve customer or member experience and increase profitability.
- Empower Employees and Customer Experience
Empowered employees feed into improving customer experience, and happier customers contribute to empowering employees. A powerful part of this cycle is data analytics. Data analytics produce actionable insights that save employees’ time so they can focus on what is most important. Based on data, your institution can send timely, relevant messaging based on customer-expressed preferences and interests.
- Improve Institution Performance
With more time to connect with customers, employees can build a deeper understanding of their financial needs and improve your institution’s performance. The right data analytics solution leads to a more productive and profitable financial institution. In our increasingly competitive financial landscape, employee and customer experience are vital to your institution. Customers expect seamless communication and digital experiences that are secure, intuitive and relevant, and employees appreciate work environments where their work contributes to its overall success. Using your data to its fullest potential allows your organization to make better strategic decisions, identify and act upon growth opportunities, and focus on your customers.
With data solutions like KlariVis, you can see your institution and your data clearly for the first time. To learn about more benefits for your financial institution, visit the KlariVis Advantage page.