Advanced Analytics for Retail Banking
The most important new technologies (after mobile) for banks are advanced analytics/big data where 57% of banks expect the impact to be high or very high. Advanced analytics includes predictive and prescriptive analytics.
Analytics applications in banking are moving up the maturity curve. Applications of Analytics in Banking can be classified into four main categories:
- Customer acquisition
- Product and portfolio optimization
- Risk management
- Workforce optimization
The adoption of workforce analytics has been slow compared to applications in risk management, customer acquisition, and product/portfolio optimization.
Even though banking is ahead of other industries in analytics maturity, there is certainly an opportunity for innovative banks to improve and develop competitive advantage using advanced analytics.