The financial sector has always been an intensely data-oriented industry. Excel has been used for data analysis for banks and financial institutions. But the rapid growth of data coupled with the need for automation and personalization have made Excel insufficient for this purpose. Most companies have a fragmented data storage system and aggregating and extracting insights from this data is a tedious and overwhelming task if it is done manually. The sector faces the challenges of evolving customer demands, changing regulatory landscape, and rising competition. To resolve these challenges, Business Intelligence helps companies leverage enormous volumes of data to derive meaningful insights.
Microsoft Power BI is a business analytics service that provides interactive visualizations to drive actionable insights and business results. Power BI is the market-leading business intelligence platform according to the Gartner Magic Quadrant for Analytics and Business Intelligence Platforms. Microsoft Power BI effectively combines data from different business applications to create a single source of information that can be used by any employee of a financial institution. It provides a transparent approach to enhance financial operations and decisions with the help of visual and real-time analysis of trends and patterns. Power BI provides built-in machine learning capabilities and seamless integration with popular business management tools for improving organizational performance.
Read on to know how Power BI is driving growth in the financial services sector.
Holistic view of business
The financial sector generates a vast amount of data every year. Aggregating and understanding this large amount of data is not an easy job. Achieving a 360-degree view of customers and business is a challenge for financial companies. Power BI helps businesses quickly understand and analyze large datasets to provide actionable insights. Financial data teams do not have to use up most of their time trying to find, format, and present the right data. Power BI enables them to share the latest data through powerful, interactive visualizations and focus on strategic decision-making. The ease of data handling and access allows analysts to create dashboards that report a comprehensive view of business and customers and monitor overall performance metrics.
Real-time Reporting
In finance, timely and accurate decision-making is important to lower risk, increase profit and improve customer experience. With Power BI, banks and financial institutions can analyze historical and current data to detect customer behavioral patterns and potential roadblocks in the system. The dashboards are refreshed with current data so that all employees have access to accurate information and they can use these visual reports to take necessary actions immediately with real-time data.
Risk and Compliance Management
The rapidly changing risk and regulatory landscape necessitates financial organizations to efficiently manage compliance to reduce costs and build trust. Power BI helps banks and financial organizations ensure compliance with the changing regulatory standards with help of dashboards that keep track of this data. It also helps detect fraudulent activities to minimize risks by spotting outliers in the Power BI reports.
Financial Analytics
Power BI replaces the traditional approach of analyzing data using Excel with an automated process. It brings together siloed spreadsheets and data from multiple applications into one consolidated platform. Banks and financial institutions can leverage powerful visualizations and dashboards on Power BI to convey key financial metrics in the balance sheet, profit and loss statements, liquidity and cash flow status, etc. They can also get a complete view of previous years’ data for comparing and analyzing performance. The metrics are automatically updated for real-time tracking, eliminating the manual process and improving agility.
Increasing Customer Retention
Leveraging Power BI for tracking customer preferences, habits and behaviors helps financial institutions to personalize their products and services and promote customer loyalty. The analysis of this data also helps them understand why customers switch to a competitor and use that feedback to improve their services to reduce customer attrition.
Improving Operational Efficiency
Power BI helps the banking and financial industry optimize their existing resources to drive lower operational costs. The platform assists financial organizations in extracting insights from business operations and analyze employee and departmental performance. With this data, they can recognize methods to enhance employee performance and ensure a better experience for their customers.
Effective Marketing Campaigns
Financial companies can discover the most profitable customer profiles using Power BI to analyze the vast transactional data and customer relationship management (CRM) data. They can categorize their customers according to demographic factors like age, gender, location, and income and understand customer reach for each category. This analysis can also identify new cross-sell and up-sell opportunities and create targeted marketing campaigns. Additionally, Power BI can also assist banks in understanding the customer onboarding experience and improve this process by analyzing the customer feedback.
Final Thoughts
In the highly competitive and data-driven financial industry, business intelligence and analytics are essential to empower your business as well as engage your customers. With its intuitive user interface, ease of use, and advanced machine learning capabilities, Power BI gives financial institutions the ability to convert their vast data into insights easily.
If you would like to know how you can drive business growth using Power BI, get in touch with our experts at enterprisesales@celebaltech.com
