Business Intelligence in FinTech

With the ever-increasing competition in the Fintech landscape, investors are seeking ways to make meaningful investments. The market for this new revolution has always been diverse, unique, and unconventional. According to global reports, Fintech has experienced a sudden decline from $46.7 to $24.7 billion within a span of one year, i.e. 2015 to 2016. While these reports narrate one half of the story, some of the other stats reflect a different side.

Tapping into the right channels

It’s pretty clear that Fintech offers a host of possibilities to investors. However, they have to be careful and invest in areas which aren’t yet saturated. If you wish to make meaningful investments and leverage available resources, it would be imperative to tap into profitable channels.

From innovative startups and tech giants to traditional institutions, every single business entity is vying for attention thus grabbing significant market share. Governments of various countries are also trying hard to enforce regulations on Fintech. In a nutshell, it is crucial to identify the avenues that change the face of Fintech and help you make the most of your resources.

The emergence of Business Intelligence

Business Intelligence and data analytics are two of the most effective resources in this regard. Leveraging these innovations will help you stay ahead of the growth curve thus accelerating your bottom lines. Here’s how BI can unlock new avenues for Fintech:

1. Business Intelligence helps in monitoring user behavior

Gaining profound information about user behavior will benefit the Fintech industry to a great extent. Since Business Intelligence helps you track and monitor user behavior, you will have the opportunity to make the right investments.

Most importantly, data analysis can assist in the decision-making process thus helping you devise useful strategies. Some of the leading robot-advisor startups like ‘Betterment’ and ‘Wealthfront’ disrupted investments by leveraging Business Intelligence.

2. Uncovering market trends

When it comes down to making investments, it becomes imperative to understand the market and its specific trends. That’s what Business Intelligence helps you do, thus eliminating chances of making wrong moves and taking improper decisions.

3. Improved security with Business Intelligence

We have seen many instances in the past where breaching the security encryption for a FinTech company data isn’t a big deal for notorious fraudsters. Business Intelligence strengthens security and enables successful behavioral analytics. As a result, fraudulent behaviors are easily tracked and investments are less likely to get laundered.

4. Unmatched user experience

Tech firms gain a competitive advantage over traditional funding institutions when it comes to ensuring unparalleled user experience. FinTech has reached great heights since the arrival of dynamic apps and online services. Disruptive technologies were the need of the hour and that’s exactly where BI and data analytics came into the picture.

Amazon’s popularity, growth, and revenues are results of the user experience it provides to consumers. Needless to say, the company had considered BI integration long ago.

Parting thoughts

Although the performance of the Fintech Industry isn’t that impressive in the US, reports from Asia state a different story altogether. The continent records a total investment of $7.1 billion which is huge and magnanimous. So, BI can prove to be the game-changing force for the Fintech industry if implemented in the right way.

The Future Of Business Intelligence

In today’s modern world, business intelligence is of utmost importance as data in business practices take center stage. BI will stand in the prime of all this and will direct future marketing strategies and business decisions. After all it is proven that companies using analytics are 5x more likely to make faster business decisions.

Today we look at BI’s prospects and why it will be center to all major business decision making in 2017 and beyond:

1. Big Demand for BI analyst

As the graph of Big Data increases, the no of people require to crunch that data and arrive at an intelligent solution for a business enterprise will simultaneously increase. A report by Mckinsey global institute states that in the next four years the US alone would face a shortage of 1.5 million managers and 1,90,000 analysts.

2. Make it universal

Currently, BI is specifically targeted to internal employees and information workers. The more it’s spread out and the more relevant it becomes to everyone, it will be a Game Changer. Outside the purview of corporate boundaries, it should reach out to suppliers and customers. Business intelligence has the power to enable businesses to compete more effectively and change people’s way of working.

3. Easier analysis of past data

As the cost of storage for data shrinks rapidly, it would be much easier to analyze past events and data. For example, currently due to data cost we are able to analyze just an economic cycle but in future, we can analyze much more than that. This will help us in forming a strong pattern. This will help businesses to bear just minimum losses in the event of a recession. History is a great teacher and BI will help us to avoid repeating the same mistake.

4. Personal analytics will be norm

As more and more data gets collected in the system, the future definitively holds good for personal analytics. It can primarily be used for self-improvement. Also, it will be used for improving family life and local communities. BI won’t be geeky in the future and everyone will be able to self-analyze. There are tremendous opportunities for software vendors to develop tools regarding personal analytics.

5. Business Intelligence will be a collaborative effort

The future of the BI would bring different tools and platforms together. Today individual BI is the norm, tomorrow it will be collaborative. Shared and immersive analytical experiences would increase in great proportion. The form factor of the devices will also gradually shift from small to large. This will help a group of data scientists explore data in real time basis.

6. Data knowledge Gap will shrink further

Data knowledge Gap in the next few years will further narrow from a group of data scientists to a normal manager or executive. As more forms of data visualization grow, more people will become familiar and comfortable with it. Major companies will also mandate training in BI.

With the above-mentioned points, there is ample evidence that Business Intelligence is here to stay. We can safely assume that, not only will it make a big impact but also it will scale up rapidly.