It’s gone! How to hit a home run with financial data analytics

These days, it seems like every financial institution is operating as if they’re up to bat in the bottom of the ninth inning with two outs. Crunch time is now all the time. We at IKANOW want to give them more strength at the plate.

Who’s on first?

Lending money carries risks not only for the borrower but also for the company or individual that is supplying the funds. While there are existing checks and legislation to try and minimize the risks to both parties, things can and do still go wrong.

You only have to look back to the mortgage crisis in the US; in January 2010 there were over seven million mortgage holders who were at least 30 days behind in their mortgage, with many experiencing foreclosure.

Having access to as much financial data as possible when making lending decisions is a must; but, it is as essential to know how to analyze the data and to know how to apply what you have learned. Financial data analytics is not for the faint-hearted.

Using the right tools and connecting with the right data is essential for hitting one out of the park.

What we mean by financial data analytics.

IKANOW sees financial data analytics as the process of collecting, analyzing and understanding as much information about people, businesses or organizations as possible and structuring that data in order to create actionable intelligence.

It involves accessing data from a range of sources and being able to collate it into a manageable form. It can involve checking for name changes, different spellings of names and where necessary translations; all to ensure that you have access to everything available on an individual or group.

It can also include spending patterns and behaviors, types and amounts of investments and patterns of work and earnings.

Why you need financial data analytics

As long as you know how to collate and read the data that is collected, you can develop a clear picture of risk and reward. By doing this, you can create actionable intelligence for you to guide your business in the right direction.

As well as identifying risk, financial data analysis can help institutions understand their customers and meet their individual needs better. It can also assist in improving customer confidence in the financial industry; essential as it remains at an all time low. Edelman, a public relations firm in the US, found that less than half of Americans trust any financial services. This is compared to an astounding 83% who have full trust in the technology sector.

As financial data analytics involve using computer software to track digital footprints, among other things, people’s faith in technology can be harnessed to return their faith in financial institutions.

Who’s your clean-up batter?

At first glance, it can be difficult to see why using an external company or software to gather data on clients can help to improve their faith in the financial system, especially with growing concerns over identity theft. However, by accessing experts in financial data analytics you can make more effective decisions quicker.

This, in turn, means that clients get feedback quicker and in the knowledge that their data has been handled fairly and securely by someone who has no vested interest in the outcome, other than ensuring that they have provided a high quality service.

The benefits do not stop there, by using an expert you can save time and money, as well. This way, you not only free up additional time to deal with more clients, but can also pass on savings to those same clients. Happy clients are likely to reuse your service and recommend you to others.

How to pick your team

If you are considering using experts in big data, to undertake your financial data analytics, you need to choose the right experts for you. You need to choose a company who can address the needs of your organization and the clients that you represent.

If you are a small lending company, focusing on house loans, you will be dealing with different clients, compared to a multinational, focusing on investing on behalf of clients. You will need to be able to access the information they provide and to do so securely. It will need to be provided in a form that you can use and easily translate into a decision for your client.

You’ll also need the right big data software solution to help you cover all of your bases.

Your next swing

In a time of continuing financial uncertainty, financial institutions need to do everything they can, to minimize risk, uphold financial legislation, and improve consumer confidence in the financial sector.

Information is an indispensable element of achieving these aims, however, information by itself is not enough. Once gathered it needs to be analyzed and understood in order to be used effectively.

By using an expert in big data, to collect, collate, and analyze customer data for your company, you can help to improve the service you provide while minimizing the risks to your company and the industry as a whole.

When your company needs a big data solution and you’re up to bat, we want to help you hit one out of the park.

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