6 Ways Banking & Finance Industry use BI Tools to Grow Faster

Technology has enabled Banks and Financial Institutions to grow from national businesses to global giants capable of managing diverse set of clients across the world. Internet, apps and mobile devices have raised client expectations, increased competition and compelled banks to spot risks upfront and mitigate them quickly.

Here are 5 ways banks & financial institutions use business intelligence to improve profitability, reduce risks and grow faster.

1. Manage Operations efficiently

Due to the highly competitive nature of the finance industry, institutions need to be as efficient as possible to improve profitability. BI Tools enable banks & other financial institutions to monitor & streamline costs, and optimize resource utilization. For example, banks can analyze the performance of front-line employees such as tellers, to improve customer experience. They can analyze the turnaround time for each process, identify areas of improvement and optimize procedures to ensure that customers don’t have to wait long to get their work done. They can analyze transactions to measure the overall revenues & costs for each type of product from each customer segment and improve their processes to increase profitability as well as customer satisfaction.

2. Better Marketing Strategies:

BI Solutions enable banks to analyze their CRM data to identify the most profitable customer segments, build tailor-made marketing campaigns to promote the right product to the right target customer, and discover new up-sell and cross-sell opportunities. For example, they can analyze their CRM to identify High Net Worth Individual (HNI) and persuade them to go for premium credit cards and account privileges. They can use BI tools to track the performance of marketing campaigns in real-time. Such immediate and measurable feedback allows them to continuously fine-tune their campaigns and improve results.

3. Improve Products & Services:

Business Intelligence empowers banks and financial institutions to analyze revenue streams for each product and service, find out which ones are profitable, and which ones aren’t working out. Analyzing vast amount of customer data enables them to understand customer preferences and requirements better, personalize their products & services, as well as get new ideas for future products and services.

4. Retain Customers:

Financial Institutions use BI tools to analyze why customers switched to a competitor – was it better products, better processes, better customer service. This provides tons of valuable insights that banks can use to improve their existing products and processes, and retain more customers. They can track customer behavior, habits and preferences to customize products and services to suite user requirements, remove process bottlenecks, improve customer loyalty and retention.

5. Risk Mitigation:

Banks and Financial Institutions rely on diverse processes and systems, to serve a large number of customers. So they have to constantly keep an eye for fraudulent transactions and customers. Business Intelligence provides actionable insights that allow banks to mitigate risks in many areas. They can use a customer’s transaction history and credit reports to determine whether this person has a history of fraudulent transactions and fix the credit limit of his cards. They can look at customer assets and earning capacity before approving loans, determining the maximum loan amount.

Banks need to abide by regulatory compliance to operate successfully. Business Intelligence Solutions allows them to monitor all their systems in real-time to track violations quickly and reduce risks.

6. Create New Investment Strategies

With so much social data easily available, asset managers can utilize this new data set to gauge trending companies and the latest business moves. They can develop financial models that leverage social media to understand popular sentiment, spot trading signals and come up with new investment strategies.


Banks and Financial Institutions that use Business Intelligence to improve operations, reduce risks and customize products & services to fit customer requirements will gain competitive edge over others and enjoy higher profitability.


Ubiq is a business intelligence solution that makes it easy to gain actionable insights from your data. Try it today!


About Sreeram Sreenivasan

Sreeram Sreenivasan is the Founder of Ubiq, a business dashboard & reporting platform for small & medium businesses. Ubiq makes it easy to build business dashboards & reports for your business. Try it for free today!