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3 Ways Data Analytics Is Revolutionizing The Finance Sector

One of the most competitive and difficult sectors to succeed in, the world of finance is going through an era of remarkable change. To maintain high visibility and growth in such uncertain times, financial services companies must constantly be in a state of innovation and walk the extra mile to get ahead of their competition.

One such development that can help them to offer better personalization, investment guidance, and security to their clients is through the adoption of data analytics.

When people think about data analytics in the finance sector, they usually connect it to stock price predictions. However, it is so much more than that. As pointed out by leaders at post COVID finance conferences in the USA, if data analytics is harnessed properly, companies can easily tap into their existing customer database and use the insights for efficient fraud detection, risk analysis, and targeted advertising, to name a few.

Let’s take a quick look at how data analytics can usher in a financial revolution:
 

  1. Lower susceptibility to bad loans

When customers don’t pay up their loan EMIs on time, it has a significant impact on a bank’s profit margins. To avoid running such a risk, banks have to take a few steps to understand which potential customer presents an increased risk of leading to credit losses. To ascertain creditworthiness accurately, banks can use data analytics tools to make such decisions. Not only will this significantly lower risk, but it will also speed up loan processing times.

  1. Better identification of fraud

With frauds and online scams on the rise, banks have had to make increased investments in order to ramp up security and add fraud detection to their everyday operations. By adopting data analytics tools that alert them when anomalies are detected, banks will be able to offer better protection to their customers and immediately identify suspicious account activities. This way, banks can not only help safeguard the financial assets of customers, but also keep their reputation as a trustworthy and bankable entity intact.

  1. Enhanced customer service

By using existing data, banks can offer personalized discounts and products, especially when they know that a customer is thinking about shifting to another competitor for investment advice. But this goes beyond customer retention. Apart from helping to identify high-value customers using algorithms, big data analytics tools can also come in handy while crafting marketing campaigns to cater to each demographic and ultimately, play an integral role in expanding the bank’s or financial institution’s customer base.

Conclusion

As we can see, data analytics tools have the potential to change the game for finance business. For those who wish to acquaint themselves with every aspect of this arena, do add the Money 2.0 Conference to your 2022’s must-attend finance and insurance events calendar! The global conference will have an illustrious confluence of financial analysts and FinTech innovators who can help you catch up with everything that’s happening in the realm of data analytics and how it can help you to stay competitive and profitable in the 21st century business landscape.

09/20/2021 - 12:38
Author Image
vinayak
Author Name
Vinayak Joshi
Author Bio

Vinayak Joshi is an integral part of the Money 2.0 Conference team who is curious about the world of finance. With a keen interest in cybersecurity, internet financial fraud detection, scam investigation, and digital forensics, his passion lies in helping people traverse the internet securely. A self-declared anti-spam and phishing expert, when Vinayak is not working, he loves to read crime fiction, write, and play basketball.