‘Data’ is no longer limited to technology. It has expanded its reach by becoming an essential component in business. With tools like artificial intelligence, data mining, and predictive analysis it has assisted businesses in achieving their strategic goals.

It is evident that Business Analytics has been steering the wheel of advancement in every industry and the banking and financial industry is no exception. Banks record a large number of business transactions throughout the day. These real-time entries generate a lot of data, which, with the help of Analytics can be used to enhance growth and limit risks.

As the commodification of banking products rapidly increases, Analytics can help them stand out and thereby gain the upper hand with competitors.

According to the IDC Semiannual Big Data and Analytics Spending Guide of 2016, investment in Data Analytics in the banking sector amounted to $20.8 billion in 2016. Furthe, the amount of data that is generated every second is subjected to growth by 700% in 2020.

The Role of Business Analytics in Banking Sector

Due to major strides in technologies, the availability of information is at its peak. Data is growing at an exponential rate. Today, about 1.7 megabytes of information is created per second. As the cost of obtaining data processes decreases, organizations around the world have taken a keen interest in analytical tools.

As the banking industry is inherently data-intensive, there’s a sea of unused banking data that is discarded but can be highly useful. There’s real-time data available for every transaction or move a customer makes, every service the bank provides. Banks these days are under immense pressure to stay afloat by coming up with new financial services and understanding the preferences of their customers. As a result, risk management models are being adopted by the financial industry. Business Analytics, by employing the use of data mining and other advanced analytical techniques have emerged as a landmark way to lessen the uncertainty of fraud, manage market fluctuations, and control exposure risk. With the help of Analytics, a bank can obtain valuable information and insight over every stage of a customer’s lifecycle.

Analytics increases the bank’s marketing capability by evaluating functional areas like Risk, monitor of NPA, Fraud, Compliance. By Calculating Value with the help of Analytics, financial institutions can ensure optimal performance and be better equipped to make vital decisions. The overall benefits of Analytics have spread to such a degree that even the basic daily functions of a bank will be in an impediment without Analytical tools and strategies.

Advanced analytical solutions that exploit data and provide solutions on an industrial level for businesses to make prompt and accurate decisions are the future. Banks already possess the tools needed for Analytics, now all they need to do is upscale the use of Analytics to usher in a new era.

You can also reap the benefits of this and become a qualified expert in Business Analytics. India’s most prestigious business school, IIM Calcutta, is offering an Executive Program in Business Analytics (EPBA) specifically designed for professionals who want to expand their competence. The 12-month course provides training and education in Big Data, Cloud Computing, Data Collection, Data Visualization, and Financial Analytics. During the length of your course, you will be trained to structure, decode, and interpret data to deduce valuable information for your organization. With the industry-driven curriculum and hands-on experience, this course will not only help you make swift fact-based decisions but also open up the doors for many new and exciting job opportunities.