BANKING: 21st Century Banking
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Financial institutions may be steeped in tradition, but many have joined the ranks of 21st century companies by employing the latest technologies to devise more effective ways to manage their relationships with customers. Banks are now using sophisticated processes for optimising customer value that are effective, practicable, and adaptable.
TIBCO has been providing the financial services community with these sophisticated robust solutions for over 20 years, and today provides SOA, BPM, and business optimisation software for 17 out of 20 of the world's top financial institutions. TIBCO thrives in complex and heterogeneous IT environments. Leveraging existing assets vs. rip-and-replace, TIBCO's standards-based software can provide banks and other financial institutions with a complete set of tools to build a service-oriented architecture or with the individual components they need to keep up with market demands, explains Gerald Naidoo, CEO of local TIBCO partner Logikal Consulting. Banks use the software to achieve a more complete and timely view of their customers, to leverage customer interaction through various channels for better cross-sell/up-sell opportunities, and to automate activities such as mortgage origination.
Banks Are Using Predictive Analytics to Determine Buying Habits
One technology that has proved particularly useful for financial institutions has been predictive analytics. Using predictive analytics, banks are developing better advertising and marketing campaigns; determining customer buying habits (up selling and cross-selling initiatives); and creating long-term customer loyalty, retention, customer screening and rewards programmes. Credit card companies use predictive analytics to manage credit lines and collections as well as to target customers with exactly the right direct mail campaigns; insurance companies use predictive analytics to set premiums; and banks, insurance companies and even government agencies have turned to analytics to root out fraud, adds Kevin Mani, Logikal Consultings Managing Executive.
In fact, Naidoo says any company can use predictive analytics to anticipate risk, including interest rate risk in financials or price (market) risk in commodities or exposure in energy markets. Banks can also use analytics as interactive tools to help them plan their strategies and make better decisions by creating interactive maps of the problems theyre trying to solve complete with decision levers, reactions to decisions and ultimate objectives. By mapping the connections among them, banksor any company for that mattercan see the assumptions theyve made, then use those assumptions as well as the pertinent data to see what happens when they change some of their assumptions. The bottom line is that banks will make better decisions if they use predictive analytics, than if they dont.
Banks Use Data to Make Smarter Decisions
Financial companies are making bigger, faster and ever more complex decisions using huge quantities of data and requiring analytics horsepower. Growing use of data visualisations, rules-based systems being powered by statistics packages such as R or S+ tied to analytics can deliver insights to an ever-wider user within the organisation. Sharing and collaborating with real in-memory data instead of reading from historical reports is just one way that meetings and decisions are getting smarter, data-driven and supported by the best information.
Users at various levels can gain the same detail
from retail investors to financial managers and fund executives. Analytics are
among the tools being used in financial services companies to track details
that might otherwise go unnoticed by both regulatory agencies or by corporate
Our clients are recognising how well analysis of existing data can report on patterns or conflicts of interest that may be intentional or coincidental. This level of transparency has been difficult, if not impossible, in the past but now it can be automated by using line-of-business rules and logic that automatically notifies relevant executives of an action that might be suspicious, Mani says.
The relationship consumers have with their banks is personal. In exchange for trust with their most important assets, they want their banks to deliver products and services that are reliable, customised and available anytime, anywhere. Financial institutions looking to achieve these goals and to stay competitive and profitable in the face of regulation are using TIBCOs solutions to identify new sources of income by bringing new, differentiated and revenue-rich offerings to market, Naidoo concludes.
Business News Sector Tags: Finance|