The Importance Of Business Intelligence For Banking Sector
The advancement and development of banking industry depends a lot on business intelligence. This is a computer-based solution which is basically used for analyzing historical data, coming up with reports on trends, predicting future movements, digging-out business data etc. to find reports on departments, products, customer behavior, income, associated costs, etc.
Business intelligence, often employed by the banking industry, is a set of processes, methodologies, technologies and architectures which transform any raw data into useful and meaningful information which enable the banks to take more strategic, effective and tactical moves in the future. Also, banking industry intelligence helps the banks in effective decision making and making operational insights. Business intelligence involves updated technologies like data quality, data integration, data warehousing, master data management, content and text analytics and others.
Banking industry intelligence involves current, historical as well as futuristic views of banking operations. Banking industry involves BI through manual systems along with computerization. As the banks develop and expand geographically to enhance the branch networks, the volume of transactions becomes large and unmanageable by the workforce. Such bulk amounts of transactions become unmanageable by the manual operations as it becomes time consuming, expensive and prone to errors. Hence, to offload this work pressure and make the analysis more precise, the banks employ banking intelligence solutions.
Business intelligence solutions in banking sector can be used for historical analysis, business performance analytics, performance budgeting, employee performance measurement, marketing and sales automation, executive dashboards, product innovation, regulatory compliance, customer profitability and risk management, check this greater china media intelligence.
Through such intelligence solutions, the banks can analyze their past performance over time. This helps them to plan and take effective steps forthe future. The key performance indicators that help the banks to move forward are branches, number of accounts, employees, income expenses, deposits, profit, credit, etc. For the analysis of historical performance, the banks need the growth rates and the absolute figures of these indicators. The industry intelligence remains one of the important challenges and concerns for the banking sector.
Other challenges which the banking sector face are:
The high level of competition within the industry to get more number of accounts and develop the asset base
Here, it is very important to pay attention to the historical performance of the bank. The business intelligence solution can help in this.
Another challenge for the banking sector is to select the person who can manage the branch operations and attend to the administrative details. Also, the person should be good in managing and leading the branch from a commercial perspective. Here, the work performance of the employees is very essential to be observed. The business intelligence solutions can help in this