Today we live in a world where we generate digital footprints almost everywhere. Any product we buy, any point of sales where we transact, access to the web or the social media, apps we sign up, bank or financial product relationships we have, and usage of a smartphone etc leaves data and digital footprints about us and of the transactional relationship. We have moved from traditional manual models of storing transactions & customer records to everything digital thus creating a repository of the most important asset for us i.e. Information Asset or Data. Thus the old days of relying on almost no or half-baked information to run businesses are bygone. We have now moved from:
‘Manual to automation to Digital to data to insights to action’
This data is an integral part of our lives and we derive a lot of value whether we are a bank, a merchant, a website or app owner, the Governments or private sector. Today the entire Organization’s decisions are data-driven decisions and not gut-based decisions to drive Turbo growth in the organization rather than being satisfied with a run-of-the-mill slow growth approach.
Data Analytics is nowadays an indispensable part of any Industry specifically the financial services industry. The financial services industry is incorporating business analytics in managing growth challenges and risk management it faces day to day.
Starting from basic reporting and descriptive analytics to advanced predictive and prescriptive analytics helps generate powerful insights to run businesses, enable focus on increasing top line & bottom line thus resulting in the significant business impact. In order to stay competitive, organizations all over the world are taking the data analytics route to acquire new customers, retain them, find opportunities to upsell and cross-sell to maximize wallet share.
Investing in business analytics consulting can help an organization gather and leverage the right information in such a way that they are able to make their enterprise more productive and ultimately more profitable. The focus areas within business analytics usually focus on a) Sales and marketing analytics b) Credit Risk, Market Risk, fraud/AML analytics and c) Web/Social media/News/Text analytics
The Analytics journey in the organizations usually starts from the descriptive (i.e. BI solutions) to prescriptive and goes up to the predictive analytics stage. The Possible Applications of Analytics across this chain is listed below:
- Business Intelligence Solutions – Business Intelligence & prescriptive analytics.
- Customer Analytics across the complete Customer Life Cycle is usually done through the following activities:
- Customer Acquisition – Right targeting of customers through acquiring most profitable clients.
- Customer segmentation analysis – Segment clients as per their demographic classifications & transactional behavior.
- Cross-sell & Up-sell analytics to increase customer penetration and improve products holding ratio.
- Customer Life time value – Mainly focus on increasing client profitability.
- Identify ‘Customers at Risk’ – Through attrition analytics
- Sales Channel Analytics – Improving sales channel productivity through right product focus & targets, sales force optimization and Right hiring of sales force.
- Unstructured data analytics
- Social Media listening and measurement – Understanding customer voice on Social media channels.
- Monitor competitive analytics on public domain noise. Filtering noise to focus on key insights.
- Credit Risk Analytics – Portfolio analytics, Risk based pricing, Building credit risk scoring, PD, LGD & EWS model analytics.
- Financial Market Analytics – Quantitative techniques in structuring product analytics, Robo advisory models, Market risk analytics, Risk-return attribution analytics, Derivatives & Structured product pricing analytics.
About The Author
Gurpreet Singh is the co-founder of G-Square. He leads the Sales & Marketing, Finance, HR & Strategy functions for G-Square. He has 20 years vast experience in the domain of financial services Industry. He has worked with renowned Institutions such as RBS bank, Dresdner bank, ICICI Prudential AMC, EFG Wealth and Mirae Asset management in past. He is a PGDBA, CFA, CFP, B.Com (hons) by qualification. His domain areas include Wealth Management, Asset Management, Banking, Capital Markets and Consulting. Gurpreet is an avid sportsperson and loves networking with people.
G-Square Solutions provides AI driven analytics solutions to the Financial Services Industry. It has analytics products & services which cater to some of the marquee clients in India and abroad.
