Banks for years have been collecting and sitting on heaps of data. We all know the potential of data and if used smartly, banks can differentiate themselves and stay ahead of their competition. Below are a few areas where analytics can help banks open up a new world of opportunities.
Sales and marketing - Analytics can easily point out to show what’s working in terms of marketing for a bank and which strategy is giving the best Return on Investment (ROI). It can further classify customer target segments and make them easier to manage. Banks that have the ability to collect demographic data can leverage predictive analytics and see what marketing campaign would be most effective for them. Once these prospects are shared with the sales teams, big data can help determine which sales techniques would be most effective for them and what leads might be dead.
Security - For digital banking customers, fraud and unauthorised spending are their biggest worries. They would like their bank to be proactive and do all it can to safeguard their money. Through big data analytics, banks can create a typical customer profile and identify any unusual activity which may indicate that the account is being compromised. Such analytics will protect the customer and help the banks avoid investigation and chargebacks, which is often time consuming and expensive.
Personalised products - For banks to improve their product offerings and services, gathering and analysing data of how customers use their banking products can be highly beneficial. Mobile apps, portals and data from various other customer touchpoints can be used to determine whether products are fulfilling customers needs and how exactly are they being used by customers. Identifying these trends within data can help banks create much more user friendly and customised banking products, thereby enhancing overall customer experience.
A robust banking ecosystem reflects the state of economy of the country and instills a great deal of confidence amongst investors. However, banking over the past decade or so has seen rapid advancements through the adoption of digital technologies. We are marching our way into a world where digital payments will occupy a majority of the transitions and cash will take a backseat. In a post-pandemic world, banking as a service will evolve and banks as institutions will have to redefine themselves as they face competition from sectors that were once hardly in the picture.