CASE STUDY

Big Data Analytics in Banking Helps Client Improve Profit Margin by 11% 

Dec 5, 2022

Big Data Analytics for the Banking Industry 

Big data analytics has become the next big thing for all industries across the globe, big data has not only helped clients fulfill their targets but exceed their expectations as well. Although unlike other industries, big data analytics in banking plays an especially significant role. Players in the industry are utilizing big data for various operations such as: conducting cash-in-transit operations, enhancing safety, improving efficiency, and much more.  

Moreover, big data analytics encompasses various sub-sections that provide specialized services to all requirements of the banking industry. For instance, transportation data analytics has become a prominent name for players in the industry aiming to keep their transportation costs and rising traffic in check. Technological advancements have helped players unlock a domain of conceivable outcomes to capitalize on such big data analytics in the banking industry. Not only with transportation, but rather the adoption of big data in the banking sector has enabled simplification of logistics and effective utilization of resources. 

 We’re already aware of the vast quantities of consumer’s extremely sensitive data that the players in the banking industry have accumulated with the enhancement of technology. This calls for superior and sophisticated measures to tackle chances of data theft, considering the tendency of new-age consumers of being much more privacy conscious compared to their traditional counterparts. With the typical consumer becoming more informed about how banks gather, store, and utilize their data, transparency is becoming a big factor when it comes to building a rapport with customers.  

Maintaining openness and transparency has become the new norm for players in the banking industry in order to build confidence in their clients and highlighting the precautions being undertaken to protect the customers’ sensitive data and assets. Talking about visibility, Quantzig offers an analytics software that integrates with the client’s whole IT ecosystem, and tackle any potential threat aimed at stealing financial services data. 

Our analytics tool is often implemented by warehousing giants where customers might require historical data to improve their processes and create a data warehouse. This comes in handy for all players in the banking industry too. Data warehouse are capable of combining all their transactional and historical data to leverage the data and get actionable insights to serve their customers better.  

Request a free proposal to know how big data analytics can help you gain comprehensive insights to deliver intelligent, timely actions that improve customer engagement, increase revenue, and lower costs. 

Did you know that fraud carried out by bank employees resulted in an estimated loss of $3.6 billion in 2020 alone? Big data analytics in the banking industry can help the players in the industry drastically reduce these numbers as you’ll find in our case studies. 

Another thing that differentiates banking clients with other industries is their reliance of market research through direct contact with existing as well as potential clients. This research helps the client understand their customer needs better and gauges the possible success of an offering. And in order to gain a competitive edge against their competitors, clients in the banking sector are gradually adopting AI- and ML-led product development approaches. 

Big Data Analytics in Banking Challenges Faced by the Client 

After attending one of our webinars, the client, a leading bank in Asia-Pacific with operations across the continent, connected with us to understand how we can help them achieve their targets. Once the client connected with us, the first step was to understand their challenges and devise bespoke solutions to help it out.  

The client wanted to eliminate unnecessary delays by determining optimal routes, minimizing manual intervention, and reducing transportation costs among other things. Through Quantzig’s superior analytics framework, the client aimed at improving their current transportation system, improve performance of logistic operations, and monitoring future scenarios.  

Not only this, but the client was also facing several challenges related to data accuracy and maintenance including a lack of front-office controls, resulting in unsatisfactory customer interaction and limited validation. The client saw an inefficient data architecture due to numerous legacy IT systems, absence of attention to IT issues, and more. 

Once the client explained all their challenges, our experts started work on uncovering the full extent of the client’s challenges. To improve the offerings of the client, our experts decided that a new mutual fund portfolio would help the client fulfill the investment requirements of the customers. Our produce developers highlighted the importance of innovating based on the understanding of the customers and decided to assist the client explore the new mutual fund portfolio’s initial research, objectives, and goals as well.  

The client also wanted to focus on all life stages of the customers when it comes to financial planning to help the customers ensure retirement income, manage market volatility, and optimum life savings. This called on developing a portfolio in line with age and risk tolerance to determine the potential success of financial planning. The in-house product developers with the client wanted to explore their goals of wealth creation for the customers while also adopting strategies to handle various schemes. 

Revolutionary Big Data Analytics in Banking Solutions for the Client 

With the full extent of the challenges identified, the next task was to create tailor-made solutions to tackle the woes of the client. To tackle the transportation related challenges of the client, our experts developed big data analytics solutions based on the information extracted from the data warehouse to help the client gain insights into transportation routes, population data, network constraints, and more. The framework also helped the client eliminate challenges of its logistics operations by gathering information from geotagged network data.  

Our experts deployed a superior big data consolidation services solution to help the client invest in the relevant offerings to start their journey toward enhanced agility and flexibility while introducing a future-proof data foundation. The client was able to define a clear data strategy, which was then converted into tangible use cases, this enabled the implementation of a robust data governance platform to ensure data quality across throughout the process. 

The client saw an increase in its market share by introducing new product and services based on the structured data on the basis of timestamp, CSR information, location, and transactions. By evaluating customer behavior and economic trends through analytics solutions, our analysts were able to improve and confirm the business idea, and helped the client reach their target audience wherever they were. Catering to new clients comes with its on challenges as well as opportunities, and demographic research allowed the client to make the most out of this opportunity.  

Once this was dealt with, our experts diverted their attention to the next challenge. In a bid to manage assets and reduce debt, our experts utilized superior big data analytics to identify the relevant strategy and techniques to help the client reach the expected result. Through a 360-degree view of the consumers and their behaviors, our experts helped the client anticipate the needs of the customers as well as opened new avenues for up-selling opportunities.  

Our experts also highlighted the importance of marketing campaigns led by big data analytics to help the client realize superior results. A marketing campaign led by AI and ML helped the client boost the loyalty of their consumers by increasing the awareness of not only the product but its benefits as well, and that too, to the right audience.  

Key-Takeaways 

Our experts implemented extraction process based on big data analytics in banking to help the transfer or export of raw data from various segmented and siloed data sets to one staging area – the data warehouse. The client also realized faster and more reliable data sets through local and cloud-based analytics tool, which filtered the data through many validation processes, ensuring reliability.  

This helped the client automate mundane processes and tasks while allowing the client to replicate their data within minutes. Apart from this, our expert solution helped the client realize benefits such as: 

  • Increased fleet utilization by 15% to 20%.  
  • Coordinated and integrated all IT systems to boost productivity and lower risks  
  • Reduced cash-in-transit (CIT) and idle time   
  • Optimized transport routes  
  • Enhanced the development of network optimization solutions  
  • Increased profit margin by 11% 
  • Increased system security   
  • End-to-end assistance throughout the deal cycle, from initiation to completion   
  • Easy data aggregation services that included manual/auto-data ingestion, data/document sourcing, validation, and insights generation   
  • Identified and executed options for automation to boost efficiency   
  • Regulation analysis and monitoring for global banking sectors   
  • Competitive benchmarking study for products through cross-category benchmarking and balanced scorecards   

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