IDC predicts that by 2025 world’s data will grow 61% to 175 zettabytes, with as much of the data residing in the cloud as in data centres. With such an explosion in data, analytics has rapidly changed from being a ‘nice-to-have’ to a ‘must-have’.
In today’s complex business environment, the customer experience has taken center-stage – highlighting new expectations in the way businesses interact with their customers. They expect seamless, consistent, and personalized experiences – that’s where the power of analytics comes into play. By using data and analytics to anticipate and respond to customer behavior, companies can develop new and creative ways to cater to their audiences – revolutionizing the customer experience.
Analytics in lending: It all starts with data
The lending industry is data-intensive with typically massive graveyards of unused and unappreciated credit processing data. As lending firms and credit bureaus face increasing pressure to stay profitable, understanding customer needs and preferences becomes a critical success factor. In this scenario, data mining and advanced analytics techniques are being increasingly adopted by firms. The major areas of focus are:
- Credit Scoring: Customized credit models enables credit managers to reduce the lending risk by making data-driven decisions
- Budgeting: Firms can streamline the budgeting process with greater efficiency
- Fraud Prevention: Data analytic techniques will help the organization to detect the possible instances of fraud and implement an effective fraud monitoring program to protect the organization.
- Loan Approval: Can improve productivity and optimize resources and it can decrease loan defaults and help the business to capitalize on available funds
Being the best in an industry is no longer enough; now companies must aspire to be at least at par across industries to compete effectively. So, firms should take the right tactic.
The approach to implementing analytics:
- Align business goals with analytical outcomes
- Identify the right analytical partner/tool
- Identify the best data visualization tools
More and more firms start looking at analytics models as the ability to see even a tiny piece of the future can lead to happier customers, improved efficiency and productivity, and more successful business decisions.
Benefits:
- Helps you set realistic goals
- Better decision making
- Helps in mass personalization
- Increase revenue and lower cost
- Effective risk management
- Compliance monitoring and reporting
- Efficient debt recovery
- Monitor social media
- Customer behavior insights
With several years of experience in the lending domain, Insight Consultants offers a powerful and user-friendly solution that enables informed decision-making through accurate predictions and easy-to-build decision models. If you are looking for ways to harness the power of data analytics.
