Extending the Digital Influence of Financial Services with Predictive Analytics
Despite 98% agreeing the delivery of digital services is a critical component to the future of their business, 95% of global business decision makers face challenges when it comes to achieving a more successful digital strategy, including budget constraints, lack of visibility to manage the digital experience and legacy infrastructure.
Financial institutions have historically not given adequate priority to data infrastructure, limiting the opportunities that can be derived from the analysis of the hordes of data they collect. The tide has already begun to turn however, with the application of predictive analytics across the financial industry already extending these intuitions’ digital relevance, improving how they segment, target, acquire and retain customers.
The deployment of predictive analytics can advance any go-to-market strategy, enhancing the client onboarding process, optimizing the allocation of resources and even improving the quality and speed of decision making. The insights derived from the market can launch tailored variants of financial products to suit the various consumer segments. Even the insights from an institutions previous product performance can assist in maintaining an accurate product portfolio.
Fraud Prevention and Detection
Imbedding predictive analytics within transactional systems enhances fraud prevention, detecting anomalies and patterns that could potentially signal fraud. Combining this level of advanced analytics and machine learning, financial institutions can actively react when consumer behavior strays from the norm. fraud patterns evolve quickly and constantly. Despite the various measures in place, fraudsters quickly adapt and find ways to evade the finance industry’s fraud prevention strategies. Continuously updating and refining fraud detection strategies, predictive analytics not only enhance fraud detection, but also contribute to better prevention of future fraud.
Credit Risk Management
Leveraging insight driven predictive analytics to perform risk based calculations, allows private equity firms to make healthier investment decisions, reacting to market events in real time, while reducing credit risk. Monitoring vast streams of information, predictive analytics can assist in asset-allocation decisions for clients, applying data against customer profiles to detect connections between their requirements. Examining market variables such as trade volumes, price ratios and other external market factors, predictive analytics can take due diligence to a new level.
In today’s data driven world, financial institutions need to put their data to work, diversifying their portfolios, preventing fraud and mitigating risk, all with the help of predictive analytics.