Predictive modeling that utilizes data from a surplus of sources can give organizational leaders actionable insight, allowing them to make more informed decisions. This gives an insurmountable competitive advantage to organizations actively analyzing this data and acting on it.
This article will explore how data science can give your financial institution a competitive edge.
While traditional analysts are very happy in a spreadsheet, these can be incredibly time-consuming, difficult to collaborate within, and are dangerously error-prone. In a time where we need unique solutions, this creates a perfect opportunity for data science, machine learning, and AI tools to allow financial analysts to increase their abilities, standardize, and collaborate in the same space.
Improve customer relationships
Through data science processes and procedures, you can analyze data on sale history, product descriptions, customer reviews, competitive landscape, and geographical information to provide strategic pricing recommendations. Additionally, advanced data science activities such as machine learning models are skilled at predicting trends, instead of having to react to them.
One key benefit comes from a machine learning model’s ability to consider a surplus of data sets. For example, adjusting pricing on one product will also impact sales of all others in an incredibly complex way. While humans are aware of this impact, we largely struggle to accurately predict the outcome
Read more about how AI can improve and optimize customer relations in our last blog.
Keep up with the times
Today, technology is a necessity across the board. No matter what the size of your institution, implementing technology-focused solutions are table-stakes. New challengers like Stripe, Square, and Venmo are re-writing the rules of financial services. However, your institution can keep up by accelerating your digitization path and introducing new players, like AI, to the mix.
Plus, you don't need a data warehouse or significant IT investment to do this. Anyone can do this no matter where they are in their IT lifecycle. Don’t get left behind changing times. It’s important to strike a balance between tech-enablement and creating a personalized customer experience with a financial institution.
Data science can help your organization develop a competitive edge in a number of ways. Not only does it provide keen insight for taking more effective action, but it also is another way to introduce technology in an impactful and actionable way.
Interested in exploring more benefits you can derive from AI efforts? Download our guide to data science for banks.