How Analytics and Decisioning Drive Value in Financial Services

Financial institutions collect large volumes of customer and operational data. A recent study by International Data Group (IDG) revealed that institutions increase their data volume by a staggering 63% each month. These data sets, which include transactional, operational, and behavioral inputs, contain a wealth of customer insights. The real challenge, however, lies in turning that data into meaningful, actionable outreach.

To close this gap, FIs can leverage analytics and decisioning solutions that process data in near real-time, resulting in predictive metrics that inform better decisions.

Analytics plays a vital role in helping institutions interpret data to quantify and qualify both opportunities and risks. Quantification provides metrics that are useful for assessing value, risk scores, goal achievement, and timing thresholds. Qualification adds context to that information, helping institutions engage more effectively and personally with customers.

Data collected through analytics informs decisioning related to engagement timing, campaign selection, account application approvals or denials, and fraud detection. For example, if analytics show that a website visitor is interested in a particular product and appears ready to purchase, decisioning tools can trigger the right outreach at the right moment to secure the opportunity. Analytics also support human decision-making, such as approving accounts or adjusting operational strategy based on management KPIs.

Consider another situation where fewer customers are visiting physical branches to research products. This indicates the institution may be blind to early-stage activity through digital channels. By implementing analytics and decisioning solutions, the FI can track digital visitors earlier in their journey, measure needs and readiness, and initiate engagement with timely and relevant content.

Analytic and decision models enable financial institutions to make informed decisions, reduce risk, segment customers more precisely, and increase revenue. These tools allow institutions to remain competitive and execute strategies with greater precision, improving results throughout the customer lifecycle.

For more information, download our interview: Driving Value Results with Analytics and Decisioning