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Pacing ahead to conquer the next-gen technology & drive business growth

How Data and Analytics can potentially reshape the future of BFSI in India


With Data and Analytics, progressive banks can spearhead innovation and meet the rapidly evolving customer demands head-on

 

As a BSFI company in India, you will have access to abundant amounts of data. However, what matters is how effectively you’re able to utilize it to your advantage.

 

To start with, you need to determine if your data is improving your business value and operational efficiency. Next, you need to check if it’s helping you optimize your customer experience delivery model to match your customers’ expectations. If you’re unsure, then here’s what you need to know-


Unshakle your data

Unshackle your data with analytics

If you want your data to make you stay competitive in the long run, then it’s time for you to unlock its real potential value using Analytics. You can deploy analytics to generate business insights that can be utilized at every stage of the customer lifecycle, and subsequently lead to a successful CX transformation. Analytics can also be effectively utilized to identify monetization avenues that can maximize your profitability. Moreover, you can utilize the analytical insights to differentiate your brand and offerings to gain competitive advantage and future-proof your business.


Consider this for example :

A leading micro-finance bank in India with a sizable market share in rural areas wanted to explore new avenues to attract urban customers. The concern, however, was the lack of suitable product offerings that could help it stand out from its competitors.


A data-driven strategy fueled by advanced analytics enabled it to explore the customer demographics and consumer characteristics across the country’s major urban centers. Based on several sets of big data on credit-card statements, online transactions, and payments, the bank was able to discover thousands of microsegments in its customer base. It used the invaluable insights to build innovative products that not only allowed it to become a key player in India’s urban banking sector, but also propel its revenue by a whopping 14% in just three fiscal quarters. Want to know more about this interesting case,click here.

How well is the BFSI sector in India riding the adoption curve?

A key element in achieving complete digital transformation for the BFSI sector in India is the adoption of data analytics. This is crucial given that lending and deposits in the Indian market have been increasing at a CAGR of 20% and are poised to see further growth. Such advancement will only spur the demand for automated solutions, driven by data analytics. Check out some of the typical advantages of Analytics for BFSI


Data and analytics-driven business intelligence can help you to:

  • Gain customer insight

  • Help in customer experience management

  • Identify feasible channel execution

  • Curate best and tailor made business strategy

  • Risk management

  • Understanding of customer segmentation and campaign management


Six business drivers

Building a sustainable data foundation

While you can upgrade your system, data that is outdated, inaccurate, inconsistent, or incomplete can creep in to skew results. As a financial institution, you should carefully review and consolidate your existing data before you migrate it to the new system. Here are some of the ideal approaches you need to adopt for creating a data foundation that’s sustainable and long-lasting -


  • Data Governance and Master Data Management (MDM): You would have to create a single, accurate and transparent record that you can trust by bringing all your data together from across the enterprise and business ecosystem, which can be done by adopting Master Data Management (MDM). Subsequently, to prevent your trusted data from turning corrupt in the long run, you need to have certain parameters and controls around it, which can be done by having a Data Governance framework in place

  • Data Engineering: To collect and validate quality data and to process large amounts of it quickly, you need to adopt the Data Engineering methodology. It organizes data to make it easy for other systems and people to use, and includes different modules such as data infrastructure, data mining, data crunching, data acquisition, data modelling, and data management

  • Data Visualization To improve analyses and understanding of your data, you can use visualization and graphical representation of data, which includes charts, plots, infographics, and animations. The visual form of information helps in communicating complex information and data-driven insights in a way that is easy to understand, enabling better and faster decision-making

  • Elastic Stack As a collection of open source products, Elastic stack will help you extract data in any format and from any type of source. You can also use the tools to search, analyze, and visualize the collected data in real-time. As a leading platform on Enterprise IT analytics, Elastic provides multiple capabilities like search and observability of massive data assets at scale. The capabilities also include Security Information and Event Management (SIEM) to improve security awareness of your IT environment, which is essential for financial enterprises

Improving business outcomes with domain depth and advanced analytics

By implementing insights-driven operations, you will not only be able to stay ahead of customer expectations, but also spearhead innovation. To achieve the transition, you will need to deploy advanced analytics across the organization, which includes all your applications, processes, and functions. To forecast the future trends accurately you would have to combine past data with current market knowledge. For this, you would need predictive analytics and AI-driven machine learning to take control of your data operations.

 

As a banking and finance company, you can use the proficiency of leading IT experts to leverage the power of data and analytics into finance and transform your department to its core. For instance, NSEIT has enterprise-grade and flexible solutions built on the basic foundation of Data Engineering, Data Operations, and Data Visualization. These advanced analytics solutions that use Agile BI methodology can help you achieve successful data-driven transformation through key procedures like consolidation, validation and real-time reporting. Moreover, as an Elastic Partner with a dedicated Centre of Excellence for Elastic stack, NSEIT can help BFSI companies like you to unearth business-critical insights by providing comprehensive analytics expertise on large data assets at scale

 

As analytics continues to provide BFSI companies with more marketing muscle, you can translate its power to other functional areas like Risk, NPA monitoring, Compliance, etc., to ensure optimal performance, growth, and profitability.


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