How to Leverage Data Analytics Capabilities to Optimize Financial Growth

Data analytics has helped financial services companies build better relationships with their customers, deliver new products at scale, and compete with offerings that are perfectly tailored to consumer demands.

FREMONT, Calif.: The use of data analytics has enabled organizations in the financial services industry to develop stronger customer relationships, deliver innovative products at scale, and compete more effectively in the marketplace with precisely targeted solutions. . Integrating live data sources maximizes these benefits by enabling businesses to utilize IoT, financial markets, and account activity data in real time. Find out how companies are using data analytics in finance to increase their competitiveness.

Financial services companies are increasingly using the vast amounts of data at their disposal to gain insights and improve decision-making. Three themes have been developed to maximize the utility of data in financial services.

Data stored in the cloud

Legacy on-premises systems have various constraints that result in a lack of data visibility, an inability to securely access critical third-party data, and an inability to scale quickly. Organizations in many industries, not just finance, are turning to the cloud for this reason. Unique cloud capabilities allow financial services organizations to grow without compromising security. Cloud computing is versatile and scalable almost indefinitely. And contemporary platforms like Snowflake can easily handle semi-structured data, which is vital for real-time analytics.

Data Collaboration

When it comes to financial data, security comes first. However, in today’s technologically advanced world, financial service providers must be able to transmit data instantaneously and frictionlessly so that customers can perform necessary account-related actions. In addition, financial institutions need to work together to facilitate service delivery. For example, credit bureaus and banks must communicate information for the approval of accounts and loans.

Secure data sharing requires a centralized repository that eliminates the need for unnecessary and security-threatening data mining. A platform like Snowflake allows financial institutions to define who has access to their data and ensure that all business units and partners have access to a single, secure version of their data.

Modern Data Strategies

Modern data tactics are growing in importance, enabling financial services firms to improve their analytics and business intelligence. These tactics help businesses use accessible data more effectively and efficiently.

Democratization of data: Historically, data was the exclusive domain of data scientists. But in today’s fast-paced environment, decision makers can’t afford to wait hours or days for the data team to submit a report. They must be able to independently acquire relevant, high-quality data and use it to gain insights. To achieve this goal, financial services companies are developing cloud data platforms that act as a single source of truth and result in a unified view of product, company, and relationship data.

Gain insights from alternative data: Insights gathered from alternative data are invaluable to modern financial services businesses. Organizations can use alternative data from various platforms, apps, and websites to acquire additional information about potential customers. This data includes both demographic and psychographic information, in addition to company-related information.

Strengthen financial data analysis capabilities: Strengthening financial data analysis capabilities can help companies provide forecasting information, marketing insights, and product development assistance. Additionally, analytics can identify operational inefficiencies and risk reduction potential. Companies in the financial services industry are using more comprehensive data analytics solutions that enable their employees to conduct business intelligence and act quickly on findings.