Data has been the new currency in today’s digital landscape. Access to data analytics compounds its value in financial services, even more, helping financial service companies stand out from the competition.
Data-driven analytics is crucial to growing businesses, helping them up their game, and improving their services, even more when customer data volume increases. More companies are following through, using automation to speed up the completion of repetitive tasks. Others are now using bid data to drive more customers through to conversion.
Here are a few practical uses of data-driven analytics and financial planning analysis for financial service companies:
Business Process Automation
Data analytics in finance can help streamline processes through automation. This can be seen in instances such as:
- Evaluating customer credit risks and making real-time credit decisions based on data such as their age, income, address, guarantor, loan size, job experience, rating, and transaction history.
- Understanding and managing customer complaints to help leaders assess common reasons for objection, identifying the root cause, and helping them respond to affected customers quickly to ease unhappy customers.
- Managing responses to common inquiries to speed up their response time and focusing fewer resources on manual tasks
Drive Growth and Improve the Overall Customer Experience
Using data-driven analytics in financial services can make it easy for financial service companies to provide personalized offerings according to customer profiles. This means companies have more data to create tailored investment offerings based on customer preferences, investment behavior, demographics, and customer satisfaction. Today, personalization is big, with more customer loyalty increasing for more personalized services and product offerings, leading to happier customers and better retention.
Data analytics in finance can also help companies gather helpful customer insights to build segments according to their profiles, making it easy to cross-sell products and services that fit their needs.
Provide Customer-Specific Portfolio Advice
Data analytics in FP&A can make it easy for financial service companies to build customer-specific portfolios according to their risk profiles. This can guide financial advisers in helping customers come to the right investment decisions that are well-suited to their background and needs. For example, it gets easier to spot investment opportunities based on a customer’s risk profile and their current funds with customer segments. Alternatively, propose remortgaging a house loan or use previous spending data to understand trends and encourage better customer savings habits.
Data-driven analytics can also help automate personal finance management, giving customers a clear view of their current finances while giving them forward-looking advice.
Identify Risk and Optimize Business Outcomes
Data-driven analytics in financial planning and analysis software can help identify the early signs of risk in customers and clients and provide warnings based on liability analysis. Financial service companies can then use this data and work closely with their clients to develop feasible solutions while guiding them with the tools they need to manage these liabilities.
Advanced analytics can spot loan delinquency risks and provide alternative solutions to improve on-time payments. Advanced analytics in finance can also easily detect fraud, identify anomalies in financial transactions, and check suspicious activities in every transaction, which can be challenging to do when manually analyzing data. When companies can help their at-risk customers, they are more likely to stick with your business, which increases retention.
Financial Planning Analysis with Performance Canvas
Data-driven analytics in financial planning and analysis can help financial organizations gather and optimize large volumes of data, improve operations, and save time while allowing them to explore and capitalize on new business. There are many data-driven analytics software available in the market today that come armed with artificial intelligence capabilities that enable companies to marry data and finance processes much faster.
Performance Canvas Financials (PCF) can help streamline best practices in FP&A and empower it with automation and advanced analytics, so companies not only have access to the data they need but have the means to bring strategy to life.
From variance analysis to trend-spotting and forecasting, PCF can help companies generate strategy from data, optimize and automate the reporting process, and use all this actionable insight to improve day-to-day operations and create better customer experiences.
Keen to know more? Visit performancecanvas.com for more information.
