How the BFSI Sector in India Rely on Data Analytics

The global business today is getting transformed and changing at an exponential rate with the digital disruption backed with insight and automation by obtained opportunities of Artificial Intelligence and Machine Learning empowering Data Analytics. For the Banking, Financial Services and Insurance (BFSI) companies, analytics has been one of the key focus areas.

By doing so and looking at its benefits, the Indian BFSI sector is pouring huge capital on data analytics to escalate organizational success, enhance returns, transform business operations, cut risks and offer flawless services to its customers. Over the past few years, the practice of data analytics in India has immensely boosted and receiving customer intelligence has become unpretentious.

 

Perceive the trends in the experts’ point of view

Head of Artificial Intelligence Practice at Aspire Systems, Anand Subramaniam says, “Most banks across the Indian banking industry have either struggled with two different points. Either banks haven’t been able to leverage the surplus data which they have collected, or they aren’t able to collect insightful data points from the customer’s touchpoints.”

“With thorough digital transformation made complete, it is vital that banks aim to have a thorough data ingestion process, and leverage data to detect patterns and have a predictive analysis model for future problems that the customer wants the bank to solve. Easily put, banks have engaged in improving customer experiences through data analytics,” he further adds.

In the same context, Synechron’s Co-founder and CEO Faisal Husain points out, “The banking industry is one of the early adopters of emerging technology in India. Being a data-rich and data-dependent sector, data analytics is of the utmost importance to banks and financial institutions (FIs) and is a significant part of their digital transformation journey. Legacy banks and FIs are investing in analytics to compete and stay relevant in the market. They are cashing in on the business capabilities of analytics for increased profitability and to identify potential customers.”

The Indian Big Data Analytics industry is expected to worth $16 billion by 2025, as NASSCOM report forecasted. The BFSI sector, with analytics, can solve three major business challenges, which include performance, risk accessibility, and profitability.

 

Data Analytics Trends in India

According to the MD of Pegasystems India, Suman Reddy that lists a few data analytics trends, which today’s companies are looking at.

Predictive analytics – is the branch of the advanced analytics that uses traditional and current data to make predictions about unknown future activities. It is used to analyze current data to make predictions about the future by utilizing several methods from data mining, statistics, modeling, Artificial Intelligence, and Machine Learning. Predictive Analytics, for instance, provides insights into the customer tendency prospect towards a personalized credit card offer. Its possibility is brought out most effectively when combined with business processes to lure analytic insights, creating prognoses that can be used automatically by other systems like a BPM or CRM system.

Adoptive analytics – is a new form of most B2B marketers and enables real-time optimization as customer-centric strategies are automatically improved to better address customer responses throughout live customer interactions.

Data visualization – Several organizations currently hold a huge amount of data but strive to explore its business value. Hence, evolving business intelligence and data visualization capabilities can assist companies to offer actionable intelligence and find visible patterns within large datasets. To reveal hidden patterns, and make smarter business decisions, companies can now integrate advanced interactive visualization capabilities within their CRM and digital process automation (DPA) solutions.

With its process of assessing, cleansing, transforming, and modeling data capabilities with the intention to determining useful information, notifying conclusions, and supporting decision-making, Data Analytics, in the coming years, will assuredly transform the BFSI environment.