Insightful, efficient analytics is a concept that is becoming increasingly significant in the retail banking industry.
Big data analytics has become a major focus for many financial institutions, particularly larger organizations that are looking for ways to gain usable insights and guidance from the wealth of information at their fingertips.
Another form of analytics that can open up exciting opportunities and benefits for banks focuses on customer behavior. Businesses that are able to gain and utilize behavioral insights in an effective way could give themselves a crucial advantage over competitors.
Financial institutions have access to a wealth of data that can strengthen their understanding of customer behavior, putting the business in a stronger position to know what their customers want and keep them happy.
In our modern era of constant digital communication, behavioral insights can be gained from how people engage with their financial providers and how they respond to marketing messages and emails.
Developments in other fields of technological innovation – such as the Internet of Things and biometrics – could help to fuel growth in behavioral analytics in the banking industry.
Writing in the Wall Street Journal, Jim Eckenrode, executive director of the Deloitte Center for Financial Services in the US, pointed out that banks today can access all sorts of information that could contribute to better business performance and improved customer engagement.
“Physical, performance, and behavioral data generated from biometric and positional sensors for individuals, as well as shipping and manufacturing control sensors for businesses, could provide new opportunities for credit underwriting, especially for customers lacking a credit history,” he noted.
“A challenge would involve developing an understanding of which data points best predict an individual’s creditworthiness.”
Behavioral insights also offer the potential for financial institutions to help consumers achieve their financial goals and to strengthen security by identifying unusual and potentially fraudulent behavior.
If you want to learn more about this topic, register for this webinar due to take place on April 25th 2017 at 5:00pm (GMT) to hear more from experts at NCR’s Digital Insight Labs and Duke University’s Common Cents Lab.