How to Leverage IBM Business Analytics Tools in the Banking Industry

The world is getting swamped with technological advances almost daily, yet there are many banking institutions in the world who are still using spreadsheets for financial planning and budgeting? Are you one such banking institution? Maybe we can help you join the rest of the world and leverage IBM Business Analytics tools in the banking industry for more success in your business. Here’s how..

We won’t get into the nitty gritty of things but let us show you two unique ways to leverage IBM Business Analytics tools in the banking industry:

1. Financial Planning & Budgeting with IBM Cognos TM1

2. Fraud Detection & Prevention with IBM SPSS Modeler

Financial Planning & Budgeting in Banking Industry with IBM Cognos TM1

For banking industries, financial planning is so information-driven that it requires reports to be timely and accurate, and easily updated, as company operations move on. However, some companies still rely on spreadsheets for planning and budgeting. We KNOW spreadsheets are poorly suited for business planning, especially when it comes to banking industries which operate offices and branches worldwide.

Now here’s the good news – no more complicated spreadsheet for financial planning and budgeting! Let us connect you with Cognos TM1 to leverage the knowledge that you had through spreadsheets in a more powerful engine.

Financial Planning & Budgeting in Banking Industry

With old processes, financial managers may need to make the same change multiple times across dozens of different spreadsheets. But now with Cognos TM1, only changes in source files are needed, and the model will automatically replace the other files with the latest update, ultimately decreasing time.

How does IBM Cognos TM1 help?

Cognos TM1 has a cube-based structure, and can have 256 dimensions in a single cube. Multiple cubes can combine together to build a planning solution which has the capability to link many plans together, including sales, performance management, planning and of course the other financial plans.

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Next..

Fraud Detection & Prevention in Banking Industry with IBM SPSS Modeler

For the banking industry, preventing frauds is crucial to maintaining customer loyalty and maximizing operational revenues. According to a 2014 fraud report “large organizations with annual revenues of at least $1 billion are more likely to have been subject to actual and/or attempted fraud than are smaller ones”.

Fraud Detection & Prevention in Banking Industry

Percent of Organizations Subject to Attempted or Actual Payments Fraud in 2013

According to the statistics above, we could see that in 2013, 60 percent of organizations were subject to financial fraud. In the same report, for all the organizations who took this survey, 39 percent reported an estimated loss to be at least $25,000, and 37 percent of organizations reported an estimated loss to be between $25,000 and $249,999.

When facing different types of fraud, including electronic, identity theft, credit/debit etc., how to uncover them and take action before damages and loss occur, becomes essential to banking businesses.

Banking frauds trigger loss from revenue, erode consumer confidence and destroy company reputation. Instead of reaction after frauds are detected, a more proactive way is to anticipate and respond to these threats using predictive analytics – in our case, IBM SPSS Modeler.

How does IBM SPSS Modeler help?

To predict frauds at each stage, we need to “learn” patterns from data. Previous data provides information for future business planning. Starting with historical information, we look to pinpoint fraudulent claims out of the millions of records banking industries have in databases.

A data mining model is then created based on the current data.

Fraud Detection & Prevention in Banking Industry Cresco International

This information allows the banking industry to monitor interior environments across a wide variety of data sources, detect suspicious behavior, control outcomes and predict which activities have a higher likelihood to turn into fraudulent.

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In Conclusion

Business nowadays is all about the customer experience, and being successful is dependent on the happiness meter dictated by the customer. When executed correctly, the above two methods – financial planning & budgeting, as well as fraud detection & prevention – help you to maintaining a good brand image, cutting unnecessary costs and instilling a sense of confidence and pride in your customers to be associated with you as a banking institution. So get started and leverage IBM Business Analytics tools in the Banking Industry for more success in your work.

Cresco International also provides custom solutions designed specially for the banking industry. Connect with us for a quick chat!

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