Risks and opportunities are integral elements of operation for financial services companies. The ability to accurately predict, understand and analyze risk factors and potential opportunities gives companies in this industry an advantage over the competition and the base on which long-lasting client relationships can be built. Predictive analytics improves the overall ability of an organization to comb through many sources of data, identifying positive and negative trends and developing a plan of action to avoid or take advantage of them. Through business intelligence software, companies increase their insight into the market and a variety of other factors, from risk exposure to hedging strategy.
"Developing the best possible strategy and ensuring a high level of execution is critical for success."
The power and speed of automation
One of the central principles of predictive analytics is using advanced algorithms to seek out and present trends apparent in the many mounds of data that financial services companies regularly gather. Instead of relying on the work of individuals or entire departments to make these same determinations – and potentially introduce human errors to the process or miss connections – companies can rely on proven software like the IBM Cognos suite of products. With a software solution handling this intensive, time-consuming process, financial services companies can more efficiently allocate other resources and develop strategies that focus on further mitigation of risk.
An article in the Credit Union Times discussed the power of predictive analytics as an early warning system. CUT used the example of identifying risks related to employees misrepresenting investment opportunities to clients. With the right predictive analytics solution in place, businesses can develop more comprehensive insight into internal risks and take action to stop them before they turn into bigger problems. Predictive analytics can also help the financial services industry find concerns across markets and in other industries, revealing opportunities to avoid certain decisions and encourage clients to make others.
Developing the best possible strategy and ensuring a high level of execution in terms of predictive analytics is critical for success. Aviana understands how the industry can utilize predictive analytics in the most effective and efficient way through our experience helping a variety of financial services companies establish successful approaches and follow through on them. To learn more about our work in the realm of financial services, including past examples of our successful partnerships, check out our dedicated industry page.