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Seeing the whole story within the financial sector

Stuart Ward, Director of Market Development for APAC Financial Services, Qlik | July 21, 2016
Now more than ever, it is crucial to leverage data analytics to improve work processes and maintain a healthy business.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

Increased competition, market volatility and regulatory pressure have revolutionised the landscape of the financial services sector. Now more than ever, it is crucial to leverage data analytics to improve work processes and maintain a healthy business.

Analytics help staff at all levels make better decisions - key performance indicators provide visual transparency into trends and anomalies so opportunities may harnessed and emerging risks mitigated. Financial services firms that use analytics see a nearly two-and-a-half times more improvement in customer cross-sell and upsell rates compared to firms that don't.1 As such, industry executives have cited analytics as their highest technology investment priority for the past two years.2 The pressure on the industry has manifested as a drive for clarity for the whole business picture - and then to use this knowledge as the basis of a data-driven enterprise.

Sales and profitability

As customer and prospect lists are generated in the thousands, sales staff are often overwhelmed with determining which calls to make and which product or service to pitch. By combining customer data (holdings, profitability, CRM data, risk and demographics), sales staff can explore their client data-set and identify opportunities to have insightful conversations and deepen relationships. Advisors are encouraged to question, explore and interact with these living applications, teasing out the clients who represent the biggest opportunity on any given day.  By using the right intelligence, it is possible to bring together insights on product holdings, client situations, research and market movements - revealing  an actionable call list. Advisors can then be there when their clients need them most with timely advice and suitable offerings.

Credit portfolio management

To get an accurate, complete and timely view of the performance of your loan and leasing portfolio, a solution that consolidates disparate datasets: yield, cost of funds, delinquencies, charge-offs and allocated capital is necessary. The right solution has the capacity to provide a complete picture that generates actionable insights in every department.

Critically, the changes in composition in the credit book may be examined. These changes give users unprecedented capacity to quickly search for exposure to an industry of a single name in distress, taking immediate action to resolve any findings. They may also produce changes within credit decisioning to rebalance portfolios.

Branch and distribution performance

Success breeds success, which is why it's so important for financial services firms to explore why certain branches and agents do well, and use the learnings to foster modeling and training throughout the network. With the right analytics platform in place, you can examine referrals by teller staff, gauge marketing effectiveness, and use client data to help staff educate their clients and offer suitable products.

 

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