Strict regulations, tighter budgets a well as increasing competition in markets have led to the need to respond with accuracy and speed to the changes in the financial industry. This has been accompanied by the requirement for the right insights into the tons of information generated every day.
Business Intelligence, even though being adopted at a very slow rate, has immense relevance in this context. Mark Sands, regional director of QlikTech AN discusses key areas which institutions in financial industry has to emphasize in order to understand the importance of BI as well as its role in increasing productivity.
Huge volume of data
The digital content has reached a whopping 2.7 billion terabytes in the year 2012 across the world. This is expected to hit 8 billion in 2015.
The data consists of transaction data, sales figures, unstructured video, text and pictures, machine-generated log files etc. the last decade saw several companies invest in the automation of business processes by implementing software applications that are capable of producing large volumes of data.
The companies now have to focus on building the right infrastructure needed by them along with providing a meaning to Big Data usage.
Business Intelligence Brings Operational Transparency
Business Intelligence Business becomes relevant in a number of issues that banks and other financial institutions focus on.
Some of them are meeting regulatory compliance via operational transparency and effective risk management, maintaining operational efficiencies by reducing cost and managing expenses and finally, having deep knowledge about customer intelligence.
When analytics becomes effective, organizations find success through better decision making.
Points to Consider
However, while implementing BI and Big Data solutions, it needs to be kept in mind that all needs are not relevant. Immense research is needed to make the correct decisions on where these solutions are required. During the decision making process, the following considerations have to be made.
- Use of an intuitive and user-friendly interface that is highly productive is recommended. This will help users understand association, implications and comparisons of numbers better.
- Compulsive collaboration has to be encouraged where people find it very natural and simple to participate in the collaboration. This will help more users be part of the decision making process.
- Mobility should be emphasized allowing users to access company data from anywhere through a mobile interface. Rather than developing desktop experience first it will help to develop a mobile experience in the beginning which can then be extended to smartphones and tablets.
- Allow IT professionals to optimize and modify their environments to incorporate self-service platforms that accommodate more users using the growing volumes of data.
Business intelligence is here to stay and is being implemented in the financial industry to a great extend. With the Big Data volume increasing by the day, BI will have a crucial role to play in the processes of financial services in the coming years.