With the right expertise and tools, financial entities are unlocking the potential of data to drive innovation and growth
Exploring data and analytics (D&A) trends demand large-scale culture shifts. With technological rollouts taking major industries by storm, the urgency that comes with real-time data is intensifying. Here, Banks are expecting more from data, leaving just one requirement open-ended – innovation.
New age data collection and delivery uses data lakes and accelerates analytics processes with AI/ML-powered solutions. Because aggressive scaling up of architecture is the only way forward, a few trends that deal innovatively with demand, have emerged.
Where data is second to none, staying up-to-date with trends helps envision system transformation. Since data teams play a major role in driving this, we have a list of trends most Banks and Financial Entities should keep a track of today.
Environmental, Social, and Governance Data
The increasing availability of Environmental, Social, and Governance (ESG) data is enabling financial entities to develop comprehensive strategies for lending, credit monitoring, and collections. On a larger scale, the ability to build thematic strategies can be enhanced by the addition of Artificial Intelligence (AI) modules, which help investors analyze data in real time.
Cloud access lets financial entities proactively store, access, and innovate with data, enabling easy scalability for future operations. Internal and third-party applications via the cloud provide them with potential cost savings and performance enhancements while enabling teams to generate insights and analytics in a more cost-effective manner.
Automation for Access to Real-time Data
Many key insights and correlations across finance can now be automated using machine learning (ML), a subset of artificial intelligence (AI). This enables credit monitoring teams to analyze much larger data sets (from hundreds of columns to millions of columns) and new sources of alternative data (e.g. social media, credit card spending data, and financials of top executives).
Machine Learning ROI
Artificial intelligence (AI) and machine learning (ML) is showing no signs of slowing down. Frequently bringing new business use cases, the planned return on investment (ROI) still needs to be clearly explained to the board.
Research predicts that by 2022, 90% of banks will explicitly mention AI as a core analytical competency, and investments will grow. Soon, boards will look for a return on this investment.
Finally, trends need to allow you to anticipate change and manage uncertainty. Proactively monitor, experiment with, or then decide to aggressively invest in key trends based on their urgency and alignment with your strategic business priorities.
To stay ahead of the curve it is crucial to work with experts in the field of fintech and data analytics. Book a consultation session with D2K's Banking Fintech Experts to learn more about how to leverage these trends.