Pub. 4 2014-2015 Issue 5

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S March • April 2015 9 • 64 percent of surveyed organizations either have invested in big data already or have plans to invest within 24 months • Of those that have invested, 25 percent have already deployed to production and are addressing business problems ranging from process improvement to enhancing customer experience Through innovative dashboards, financial institutions can employ analytics to evaluate statistics that reveal trends in his- torical and transactional data and determine where their best opportunities—and greatest risks—lie. Additionally, a deeper dive into your big data can uncover why certain efforts succeeded or failed in the past—whether by the bank’s actions or by overall market conditions. The following examples offer insight into what your institu- tion can achieve using business intelligence tools: Detect and Prevent Fraud. Through analytics, you can better detect fraud and money-laundering patterns—in real time—by looking across customers’ transactional information to spot and flag unusual activity, and viewing geographical data to perceive if certain locations are seeing a higher percentage of fraud occurrences. Set Deposit Rates. You can improve your ability to make the pricing decisions that will help your institution get and keep deposits by combining business intelligence software with your own historical data and insight. The software can digest massive amounts of complex information, including data on such cus- tomer behavior and attributes as transaction activity, banking product purchases and income. Perform continual stress testing. Regulators want institutions to demonstrate an awareness of their portfolios to ensure that no single area takes up too high a concentration. Analytics enable stress testing to occur continuously across the organization, ensuring greater efficiency and reducing risks well beyond the intermittent stress test. Keep in mind that, while business intelligence tools can indeed accelerate your institution’s performance and increase your wallet share, it’s important to remember that they don’t take the place of sound business judgment and human insight. Still, as the competitive landscape heats up and the battle for customer retention escalates, looking through a 360-degree lens to enable the best possible business decisions can undoubtedly give your bank a sizable advantage. 1www.gartner.com Jason Young serves as product manager for CSI NuPoint. He is responsible for overseeing CSI IQ, a robust suite of business intel- ligence solutions.