Understanding Customers: Making Sensible Decisions with Analytics

24 November 2023

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How well does your bank put its strategic and organizational muscle in play to attain customer satisfaction? Increasing revenue and meeting goals is an integral part of any organization, and so are its customers. The banking sector of today has long shed its dependence on legacy systems, and with the varying socioeconomic change, banks have shifted their gears from product-centric to customer-centric models.

The power data holds in transforming businesses is compelling. They are embracing analytics to realize value and achieve operational effectiveness, and with its diverse uses, almost every industry is adopting data analytics expeditiously. Banks and credit unions are tailgating.

In recent years, the implementation of analytics has improved business performance manifolds. The explosion of data, in combination with intelligent algorithms, AI, and technology, has induced a fresh wave of curiosity around the hidden potential of analytics. Executives are curious to explore how to leverage data to drive positive business growth. In a recent survey, 63% of banks cited improved efficiency and productivity using analytics, and 57% cited faster, more effective decision-making.

Analytics Help ‘You’ Sift Through Swaths of Data

Analytics plays an impactful role in insights and predictions that elevate the bank’s performance. Imagine this: your bank knows your customers’ investment preferences, spending patterns, and credit card usage frequency. Consequently, won’t you be able to provide better services to them? Even better, you can identify a probable defaulter and derive ways to avert the impact.

How does analytics make it happen? Business intelligence has completely reshaped how industries work. In banking, data is collected and skimmed to assess the lifetime value of customers. That said, banks can make faster and more sensible decisions with analytics. Furthermore, data analytics helps them evaluate customers’ loan applications as per their creditworthiness and allows them to make decisions that benefit them.

Bolstering Banking Systems With Behavioral Analytics

To stay relevant and gain a competitive advantage, banks currently prioritize understanding their customers’ needs. As a result, this helps them create a robust and loyal customer base.

Banks are effectively remodeling services and product offerings as per user segmentation. With behavioral analytics, they are addressing their customer’s needs and wants efficiently and better than ever. With individualized service offerings, banks can easily bridge the gap between customers’ pain points and solutions. This also gives them an edge in examining customers’ behavior patterns and preferences. Malicious activities can now be more accurately identified with behavioral analytics. Banks are now able to detect anomalous spikes in user activities in real time.

This is just the tip of the iceberg that is yet to be discovered by most banks.

The Road Ahead

Most banking sector executives prioritize methods to utilize extensive data collection to make informed decisions. As per a recent study, banks applying analytics are 34x more likely to acquire customers and are 15x more profitable.

An optimal balance between machine learning and insights from data analysts can help your organization scale. Managing terabytes of data has become simpler, and it’s high time banks realized this.

By aligning regulations, ethical principles, and technological advancements, the landscape for AI usage can evolve responsibly and ethically, ensuring a brighter, more secure future for the United States and the world.

How Can Service Providers Like Quinte Financial Technologies Help You Stay Ahead of the Curve

Quinte’s data engineers and analysts leverage data mart and warehousing to derive customer-centric business insights. Our comprehensive suite of analytics tools and services enables financial institutions to optimize risk management, improve operational efficiency, and enhance customer experience. We are committed to delivering actionable insights, ensuring regulatory compliance, and driving business growth for our valued partners.

Quinte’s domain experts can help you leverage data analytics and AI to articulate data needs, distill insights and interventions, develop a data strategy, and translate it into action for your bank’s success. Our proven track record of delivering these solutions makes us an ideal Data Analytics partner for our clients.

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