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How Agile Methodology Enhances Insights on Borrowers

How Do Management Information Systems Improve Deep Insights into Banking Strategies?

Today, Management Information System (MIS) extends beyond generating statutory or MIS Reports. The Systems collate data and analyze alternative big data as well as transactional data of borrowers.

Information for C-suits is facilitated by these systems but, the output is based on services from trained experts to evaluate the data and create comprehensive reports.

Why Are Agile Systems the Need of the Hour for Banking?

Banks hold a substantial competitive advantage when it comes to the depth, timeliness, and personal level of the customer data they possess. Harnessing powerful analytics, agile methodologies enable the swift and flexible development of applications that use such data.

This practice helps in engaging with and serving customers with more innovative products — at crucial moments in customer journeys and life events.

How Does Agile Methodology-based Systems Work?

Agile software development refers to software methodologies centered around the idea of iterative development, where requirements and solutions evolve through collaboration between self-organizing cross-functional teams.

Scrum is a subset of Agile. It is a lightweight process framework for agile development and the most widely-used one.

  • A ‘process framework’ is a particular set of practices that must be followed in order for a process to be consistent with the framework.

  • ‘Lightweight’ means that the overhead of the process is kept as small as possible, to maximize the amount of productive time available for getting useful work done.

An agile Scrum process benefits the organization by helping it to –

  • Increase the quality of the deliverables

  • Cope better with change (and expect the changes)

  • Provide better estimates while spending less time creating them

  • Be more in control of the project schedule and state

How do Banks Improve Customer Journeys with Data from Agile Systems?

As Banking gets more customers centric there are important data points that when reported offer huge value. Information that can be consumed by management teams is computed at a granular level for –

  • Costing in Banks

  • Cost of Services in Mobilising Business

  • Saving, Current, and Term Deposits

  • Sanctioning

  • Disbursing Loans

  • Recovery of Loans

  • Cost per Voucher

  • Tracking Staff Costs

  • Operating Expenses

  • Other Expenses

Here’s the list of deductibles Banking Analysts can derive from banking reports coming from Management Information Systems (MIS) based on Agile Methodologies –

Customer Product Profitability (CPP)

A Robust Decision Support System computes Pay in, Pay Out, from Each Customer’s accounts, and evaluates whether a particular Customer is Profitable or not, also known as CUSTOMER PRODUCT PROFITABILITY (CPP). If a customer is highly profitable, marketing initiatives can offer incentives to Retain such Customers.

Identify Customer Behaviour Trends Transactional Behaviour of customers is very important today. Granular levels of study can reveal how many of the Customers are using Digital Channels. These services are much more advanced than normal ADF reports generated for regulators. Incentivised Offers for Related Customers

If any of the family members have different types of Products, Banks can explore some identification in MIS Systems like FAMILY CUSTOMER IDs and build products accordingly. New Activities for Supply Chain Management

Sensitivity Analytics has to be built for the review of Banking Financial and non-financial Products.

How does it work? In nutshell,  first Data lakes are built to pool transactional, financial, alternative, and ESG data. The next step requires mapping of decision variables and finally, an MIS model is built for comprehensive insights on borrower portfolios and profits expected from these accounts.

Calculating Net Interest Margins

Understand the mix of deposits, advances, investments, Letters of Credit (LCs), Guarantees, Forex, Trade finance, and Treasury Business. Finally, after making all provisions (including tax), the net profit and dividend contribution is identified.

Also, down the line, if possible, support systems should be built to fetch more Market share and Earning Per Share. 

Get in touch with D2K Banking Fintech Consultancy Experts for more information on roadmaps for deploying technologies for comprehensive data analytics.


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