Data analytics help banks to gain a competitive edge by using different methods. Banks and financial organizations have incorporated data analytics into their operations and use it for maximum value to customers. The applications have helped to optimize processes and streamline operations.
There are three major ways banks are using data analytics—detecting risks, managing the supply chain and demand.
Detecting Risks
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Fraud detection
Banks use analytics to manage risks like fraud detection. The data it collects is used to identify the severity of the risk and applies different verification methods to monitor it. According to analytics, banks prioritize their fraud detection efforts over other initiatives.
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Operational risks
Banks use data analytics to manage operational risks such as breaches, thefts, and unusual activities in systems in executing processes. They use data analytic tools to detect the areas of higher probability of risks and take immediate or early actions to mitigate risks.
Managing Supply Chain
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Analysis of Sales
Data analytics significantly help in analyzing the performance of daily banking tasks, such as cash flow, investments, loans by customers, and more. It provides a dashboard to measure performance, track and measure results of sales, and determine how the tasks perform at different levels of business.
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Analyzes of AI-driven chatbots
Data analytics helps gain data, monitor it, and extract information from AI-driven chatbots used in customer interaction. This data is further helpful in assisting customer service and knowledge management and increasing customer engagement.
Analytics for Managing Demand
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Personalized recommendations
Banks and financial organizations are highly focused on attracting new customers. They use data analytics to determine their interests and send personal banking or financial recommendations.
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Marketing
Data analytics help banks in developing and managing their marketing efforts. Analysis of customer Data helps organizations identify and target profitable customers.
Read More: How Is Data Analytics Used In Finance And Banking Sector?
