Analytics refers to the process of discovering and communicating meaningful information derived from analysing the patterns in a given body of data, and it’s a method that’s being used extensively in the finance industry. Providing financial establishments with insightful analytics services, however, is easier said than done. Even today when there are existing technologies designed to allow the use of analytics software in all financial services and sectors, there are still plenty of hurdles that analytics professionals have to overcome to maximize the use of these technologies. These include dealing with a large volume of information, accessing and synthesizing information from multiple sources, and minimizing the time and resources needed to analyse the available data.
How can your company overcome these hurdles, make the most of your analytics resources and team, and use analytics to stay on top of the competition? Here are three best practices that you should seriously consider implementing:
Acknowledge the Limitations of Traditional Data Management Systems
No matter how sophisticated your company’s analytics program is, it won’t make much of an impact on your operations if it’s still using a weak data management system that depends on collecting information from different sources. If you want to enjoy all the benefits of using analytics to make smart business decisions, it’s a must to invest in upgrading your company’s data foundation. In the past, financial establishments relied heavily on using information silos—that is, a data management system that cannot be accessed by or shared with other departments within the same company—to store data.
While data silos can organically form while the company is in the process of being set up, this management system can lead to duplication of effort and lack of synergy within the same institution. Doing away with data silos is an essential step in improving data analytics, as this traditional information management system is often bogged down by inconsistent data formatting, slowing down research speed and promoting an exclusionary culture within the company.
Invest in a Solid and Easily Accessible Data Foundation
To maximize the benefits of using a cutting-edge analytics solution, a company must first make sure that the analytics software or service that it is using has a 360-degree view of the company’s data. This allows the analytics team to provide decision-makers with an enterprise-wide view of the company’s performance and opportunities. These days, financial institutions have the option to use modern data infrastructures that allow the frictionless flow of information, unified data formatting, and easy information access without compromising data security.
Use Data Visualization to Shorten the Reporting Process
It can be quite a challenge to make sound business decisions when the key decision-makers cannot make sense of the data presented to them. Just the same, even analytics professionals can have a hard time interpreting the key points of their research if they are unable to quickly understand what they’re looking at. Often, this issue is not caused by the analytics team’s lack of skills and specialized knowledge; rather, it’s caused by the inability of the analytics solution to present synthesized information in an organized and easily digestible manner.
This is where investing in a solution with advanced data visualization and reporting capabilities comes in. While the team in charge of reporting the results of the analytics research may have the necessary capabilities to complete their report and present it well, their job would be made much faster and easier if the solution they use can give them an accurate visual presentation of the points and numbers that they specifically need to present.
Having access to a wide range of graphical representation tools and interactive data visualization options, as well as having the skills to thoroughly use and customize these features, will significantly reduce the time and effort needed to transform numbers into a detailed representation of where the company stands, the opportunities they should capitalize on, and the challenges that they need to address in the near future.
Make Quick, Sound Business Decisions Using the Right Analytics Solution
If the company is able to access information about the latest trends relevant to its industry, then the key figures in the company can make swift, sound decisions that will allow the business to maximize its profits and standing vis-a-vis the competition.
Using analytics to know exactly how the business is doing is becoming more commonplace among companies that belong to the financial sector, so upgrading your analytics software and solutions today simply means getting your company up to speed with the other key performers in the industry. To truly set your business apart from the competition, you must make every effort to procure the analytics solution that is best matched to the needs of your business. Scrutinize the solutions providers that are offering their analytics solutions to your company well, and you’ll be able to reap the result of your efforts.