Improved Customer RetentionĪrmed with customer profitability information, banks can come up with more cost effective ways of interacting with money losing customers. The payoff is huge as research show that it is five times cheaper to sell to existing customers that it is to obtain a new one. Banks can also create more effective cross-sell and up-sell campaigns by knowing who of their customers to make a marketing pitch to. Improved MarketingĪrmed with profitability and demographic information on their customer households, banks know what a good prospect looks like and will be better able to market to them. With all this new data, banks can create new and improved products and services to better meet customer needs and improve their competitiveness in the marketplace. BI tools are being used for predictive analytics as well to determine which customers might be interested in purchasing which product when and by what method (in-person, over the web, direct mail). The bank can modify pricing or business processes to improve the profitability and track the improvement. Improved Products and Servicesīusiness Intelligence tools for banks are being used to track customer, product, and branch profitability. For example, by analyzing the performance of your branch personnel that interact with your customer base, banks can find out ways to improve and enhance the customer experience at the point-of-contact.
BI solutions for banks can be used to analyze operational processes to help reduce ongoing costs and/or maximize existing resources and expertise. They must continually seek ways to make their existing workforce more efficient. Improved Operational Efficienciesīanks cannot afford to just add employees to grow revenues. Qubole wrote an excellent article entitled, “ Applications of Business Intelligence in Banking and Finance” that outlines some of the uses. When it comes to banking, there are many use cases for BI.Īpplications of Business Intelligence in the Banking Industry The main theme among these various definitions is that BI encompasses tools that help with decision making.
These BI systems allow a company to gather, store, access and analyze corporate data to aid in decision-making. Webopedia says BI represents the tools and systems that play a key role in the strategic planning process within a corporation. Gartner says that BI is an umbrella term that includes the applications, infrastructure and tools, and best practices that enable access to and analysis of information to improve and optimize decisions and performance. TargetTech defines BI as a technology-driven process for analyzing data and presenting actionable information to help corporate executives, business managers and other end users make more informed business decisions.
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