Importance Of Business Intelligence In Fintech
Business intelligence is empowering companies of various sectors of the market and is playing a significant role in the present day’s competitive market. Fintech is turning into a very competitive market. An analysis by KPMG saw a decline in investments in 2016 and investors are now more cautious about betting on segments that are becoming saturated. Lending and payments are two segments that saw expanded participation in the course of the past two years.
Importance Of Business Intelligence In Fintech
You will discover that most of the financial and banking institutions are moving towards financial technological solutions. The primary reason being financial and banking institutions are currently looking forward to a great growth spurt and the majority of them have well defined lavish budgets to imbibe IT solutions and develop large infrastructure. It is presently almost mandatory to adapt to finTech and hence getting the best out of it is eventual. Extracting the optimum of these solutions is what leads the business to success, productivity, and profitability. And, one of the significant sources to get this done is the most popular and in-demand technology today, Business Intelligence (BI). In spite of the fact that Business Intelligence Services have been a part and parcel of major business domains, it still has not been entirely used for finTech, hence, there is a huge avenue open for the individuals who are prepared to get it done right away. There is a sure shot competitive edge over others, who are still in the thought process of how to make their finTech solution work.
Business intelligence (BI) and analytics are coming out to be ideal sources. Companies who know the the importance of business intelligence, have already started to harness its benefits. Much has still yet to be made sense of in fintech and the initial companies to be able to do so will surely have a definitive advantage over the competition. It is a perfect time to start using BI in your fintech companies so, here we have bought the top 5 factors in which business intelligence play’s a significant role in the fintech sector.
Gaining significant information about user behavior will benefit the Fintech industry to a great extent. Since Business Intelligence allows you to track and monitor user behavior, you will have the chance to make the right investments.
Most importantly, data analysis can assist in the process of decision-making thus helping you construct useful strategies. Some of the leading robot-advisor startups like ‘Betterment’ and ‘Wealthfront’ disrupted investments by effectively utilizing Business Intelligence.
At the point when it comes down to making investments, it becomes imperative to understand the market and its specific trends. That is what Business Intelligence helps you do, thus eliminating chances of making wrong moves and taking improper decisions.
Another territory where BI and analytics are seeing a lot of utilization is in security and fraud detection. Fraud has been a major issue in ecommerce payments for a long time. A report from Radial reveals that overall fraud is up 30% every year. Just this year, there has been a 200% increase in “testing” or when fraudsters try small purchases to check the validity of stolen credit card numbers.
Behavioral analytics plays a huge role in determining fake behavior. Analytics can track and identify patterns that could uncover modus operandi of a fraudster. This way, merchants and payment processors could set up safeguards against such attempts. The data can also be utilized to refine automated fraud prevention protocols to limit instances of legitimate transactions being flagged as false. Legitimate users who experience such issues at regular intervals consider it poor user experience to be denied and can eventually become a lost customer for the business. Companies of various sectors have considered importance of Business Intelligence and started had working on improving their security long back.
Other fintech segments should be prepared with such measures as well. Fintech services will be a prime target for cybercriminals because of the wealth that they are managing. The proper execution of analytics and Business Intelligence can guide prevention strategies.
Tech firms gain a competitive upper hand over traditional financial institutions when it comes to ensuring unmatched user experience. finTech has reached great heights since the arrival of dynamic applications and online services. Disruptive technologies were the need of the hour and that is exactly where Business Intelligence and data analytics came into the picture.
Popularity, growth, and revenues of Amazon are the results of the user experience it provides to consumers. Regardless of the company had considered Business Intelligence integration long ago.
Chief data officers are starting to reconsider how Business Intelligence adoption has an impact a part in a strategy towards modernization within their businesses. The report characterizes its actual value as not “measured by a solution you deploy, but how your workplace uses the solution to impact the business.”
Rather than appropriation, leaders are concentrating on whether data and analytics are changing the way that decisions are made, through the assessment of programs that encourage engagement like internal communities, to ensure they make the most from their Business Intelligence systems.
Now, after understanding the importance of Business Intelligence, fintech companies must consider investing in it early on. Implementing analytics over all facets of the fintech service has numerous benefits. Analytics could help reveal better ways to engage the market, make a superior customer experience, and also safeguard the business and its customers.
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