What is data analytics in finance and how is it used?

Financial data analytics enables organizations to obtain actionable insights from their financial data to improve overall financial performance, offer new products and services to clients, model and mitigate risk and reduce churn. Organizations can also use financial data analytics to maintain regulatory compliance, manage ESG compliance, optimize revenue, evaluate profitability by product and client, and improve cash flow from operations.

How is data analytics benefiting the financial industry?

While financial data analytics is helpful in all industries, it is imperative in the financial services industry. Organizations such as banks, insurers and fund managers face various data-related challenges, including compliance, the need to access data from multiple data sources, and the need to provide timely and accurate information and serve competing requirements from the front, middle and back-office.

Traditionally, landing financial data into a data warehouse from diverse sources such as CRM systems, databases and streaming data feeds has been slow and time-consuming. Data is frequently stale by the time it is available, resulting in poor line of sight and making it difficult to make sound business decisions.

Incorta for financial data analytics

Incorta’s Direct Data Platform™ enables financial services organizations of all kinds to quickly and securely provide self-service data access to various stakeholders, including analysts and data scientists. By leveraging Incorta’s innovative direct data mapping technologies, organizations can easily tap data from diverse sources without the need for traditional data modeling and data engineering work.

With Incorta security features, organizations can ensure that sensitive financial data is fully protected. Application-level role-based access controls, including object, column and row-based restrictions, ensure that data remains secure. Access is also fully auditable, supporting financial compliance and reporting requirements. Data governance and data versioning in Incorta also help financial firms meet additional obligations, including data retention and calculation repeatability.

How is data analytics used in financial services?

With more capable financial data analytics, financial firms can:

  • Identify new customer segments for revenue and profit growth
  • Offer new products and services to clients based on data from CRM systems
  • Enhance revenue and profitability by being able to quickly answer business-level questions about customers, products or business operations
  • Improve efficiency and productivity by dramatically reducing the cost and time required to translate data into insights
  • Ensure future competitiveness by leveraging data-driven analytic and machine learning initiatives to enable digital transformation initiatives and reduce service delivery costs