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Guidance and results for the data-rich, yet information-poor.

How Data Analytics Is Driving Finance

How Data Analytics Is Driving Finance

While there are several industries that are still cautious about data analytics, predictive modeling and data mining, the finance sector has embraced the advances and reaped the benefits that many other industries are now eyeing. In fact, many sources believe that data analytics has changed the finance industry. A University of Oxford survey has shown that 71% of the finance industry already has data and analytics infrastructure in place and is using it actively.

Old-fashioned business models and the traditional way of reducing expenses aren’t enough to help them reach their goals. With data analytics, important insights are taken from location data, daily activities and transactions, customer service input and other sources to create improved business services and revolutionize how they tackle their business.

Here are areas of opportunity that the finance sector can explore with the help of data analytics:

Customer analytics is a great area of opportunity that financial companies can take advantage of. This article shows how the finance sector can use data analytics to actively predict their customers’ behavior, one of the many ways analytics can help connect the financial services sector with its audience. Data analytics provides a sharp advantage to an industry that is still getting back on its feet after an international crisis and it’s already helping boost its members in their efforts to regain their former profits margins.

Industry experts are focusing on customers and developing customer-centric projects. Using predictive analytics to accurately anticipate market conditions and customer behavior enables firms to proide personalized services that boost customer loyalty and develop new markets.

Integrated systems are needed so companies can handle the constantly growing variety and volume of data and share it with the rest of the members of their enterprise. This is a project that requires a lot of thought and consultation from experts who have already completed similar tasks. Without integrated information systems in place, companies won’t be able to make the most of data analytics.

 

Mining internal data is an extremely valuable project. Getting started with data mining might seem overwhelming, but multiple resources exist to help demystify the process. The earlier survey showed that more than half of the finance firms pointed to internal data as their main source of data they’re mining in their projects. Log data and transaction data are being analyzed and sifted through, revealing a wealth of information that was previously just sitting around.

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