9 March 2017

BI4ALL @ Business – BI solutions for banking

During the past few years, with regular technological developments, companies have felt the need to reinvent themselves, in order to respond to an increasingly competitive market and to avoid potential issues committed in the past. To do so, they have started investing in solutions for management support and integrating tools to help drive strategic decisions.

The banking sector, as a result of economic, regulatory and technological changes, is undergoing a profound transformation, forcing a thorough review of all their operations. In fact, banking is one of the areas where the investment on this type of solutions has increased significantly, since these solutions allow the improvement of risk management, customer relationship and operational efficiency.

On the other hand, the banking sector is also looking for tools that allow them to detect errors in order to avoid them, but also to support a business recovery as swift as possible. As a result, Business Intelligence is one of the solutions that have a higher demand, which can be best summarized in two main areas:

· Customers portfolio: bank accounts and loans, overdue credit, contracted interest rates, assets, incidents, impairments, amongst other;

· Internal portfolio: Investments from the bank’s perspective, as it is the case of investment in external institutions, investment securities, etc.

Regardless, these two options are just a baseline. Moving forward, it is possible to have a complete set of critical metrics and models that allow a more efficient and controlled management. Some examples include the following:

· Customers characterization, which basically consists on segmenting customers based on information patterns, specific and generic, with the soul goal of providing increasingly customized services offering;

· ​ Profitability analysis, either for portfolio or for existing customer contracts. For example, a high deposit amount is not necessarily proportional to a good return for the bank. There is no recipe for this calculation, being normal in the first instance to understand how the institution works and only then to advance to the calculation;

· Credit risk analysis is increasingly relevant, given the current economic situation of the country;

· Compliance with Portuguese and EU Directives, which are not only mandatory, but whose lack of enforcement can also lead to added costs with fines, in order to prevent fraud and money laundering;

· Market information analysis, in order to provide additional focus and a boost to sales teams.

In summary, nowadays it is critical know the business, provide essential information to analyse the strengths and weaknesses, and to develop a good strategic plan. Decision support solutions are not the future, but the present.

In this way, investment is no longer optional, but a reality to survive an increasingly demanding and controlled market. Being information is key and decision making based on intuition on disregarding existing information is no longer an option.

Most institutions on the Portuguese market have this need clearly identified and bi4all, as a company whose sole focus is providing the information businesses need in order to act, has the knowledge they require to help you deploy the best solution for your business, because each solution is tailored to the needs of each Customer and Business.

     André Marques
Business Development