3 Ways in which Kyvos can Shape the Future of the BFSI Industry

The use of business intelligence solutions is not new to the banking, financial services, and insurance (BFSI) industry. It opens up endless opportunities for financial institutions to leverage their data and be on top of their operations, improve customer experiences and negate any fraud and anomalies. Financial institutions like banks can rely on their data to become more risk-averse, customer-centric, and profitable. But as half of the world’s population uses digital banking now, data is increasing at the speed of light. The influx of data at this speed is causing roadblocks for the BFSI industry, especially while performing analytics.

Some of the major BI challenges encountered by leaders in the BFSI industry are-

• Legacy systems stand no chance – Several enterprises still use legacy systems for analytics. As these legacy BI technologies fail to handle massive amounts of data, they put the entire organization at risk.
• Massive data, higher risk – As data increases, it becomes difficult to drill down into the deeper level of data to understand complex or unauthorized transactions, leading to undetected fraud or compliance issues.
• Inability to create a consolidated view of risk – Due to massive volumes, it becomes impossible to get a comprehensive view of the entire data. This results in siloed reporting and inaccurate insights.

Data is the most valuable asset for the BFSI industry. The question now is how to use this massive data to its full potential and get critical insights. Also, another crucial aspect is how to ensure security, rapid fault detection, and quick problem resolution.

Kyvos AI-powered smart aggregation technology can help you overcome these analytical challenges and consolidate the data silos. It can handle the scale of modern data lakes and deliver faster and deeper reporting on massive historical data at a speed that was not possible before. There are several banking analytics case studies to demonstrate the value that Kyvos delivers for this industry.

Let’s deep dive into a few use cases to understand this further.

#1 Risk Management

Risk management is a data-driven exercise that requires identifying and managing financial and non-financial risks to protect the value of business assets. Unfortunately, with the increasing data volumes, the BFSI industry faces analytical challenges, such as:

• Limitation on the amount of data they can analyze.
• Inability to drill down to transaction-level data.

With Kyvos’ ability to handle trillions of data points, the BFSI industry can analyze years of historical data. Kyvos’ AI-powered smart aggregation technology enables them to build smart aggregates without any data limitations. Let’s look into some of the benefits of using Kyvos –

• Early Fraud detection – With Kyvos, the BFSI industry can develop predictive models and drill down to the lowest level of granularity to identify suspected fraudulent activities in the early stages. This way, they can identify individual customer accounts exposed to the risk of fraud and take actions like increasing the level of monitoring and verification of those accounts.
• Credit Risk Analysis – Credit risk analysis evaluates the risk involved in granting a loan to the borrower. This requires understanding the borrower’s creditworthiness by analyzing years of historical data. It helps enterprises evaluate the risk associated with the customers and whether or not a customer is eligible for the loan.
• Liquidity Risk Analysis – Liquidity risk is the result of insufficient funds when a company’s assets fall short of the amount required to meet its liabilities. It is caused due to bad loans, interest rate fluctuations, lower-than-expected cash flows, etc. To detect these situations, Kyvos can help BFSI industry to analyze cloud-scale data and get instant insights that can help them take necessary actions before things go out of hand.

Read this Risk Analytics case study to learn how this global investment bank leveraged Kyvos to boost risk analysis on 2-years of financial data.

#2 Grow Revenue and Explore New Opportunities

Delivering a pleasant customer experience is no longer a “nice to have” thing – it’s a necessity to thrive in this competitive marketplace and grow revenue by targeting potential customers and retaining existing customers. Given the rise in customer demands, financial analytics performed by business intelligence solutions need to up their game by analyzing the patterns and preferences of customers.

A study shows that 60-70% of businesses are more likely to sell to existing customers. This indicates that the BFSI industries can increase their profit share by upselling and cross-selling to existing customers.

Several businesses have years of data scattered all over the place, preventing them from understanding the complete picture of their customers. Despite spending a fortune on the cloud, they fail to get insights into data at this scale.

Kyvos helps by consolidating transaction data across hundreds of dimensions to build a holistic view of customers. You can instantly compare widely varying data parameters, drill down to the transaction level data, and better perform customer analytics to understand your customers’ behavior. As a result, you can

• Identify the group of customers delivering more revenue.
• Identify potential prospects and build a relationship with them.
• Find out what strategies have worked for your existing customers in the past and use them for new customers.
• And get many more useful insights.

With Kyvos, you can dive deeper into your customer profiles and make new strategies that can help in improving the retention rate of your customers.

Read our customer journey analytics E-book to know how Kyvos can help you to use customer journey analytics to get unthinkable business value.

#3 Make faster and more accurate decisions

Several large financial institutions today record billions of transactions daily. It becomes a daunting task for them to achieve both speed and accuracy with so much transactional data. One of the common challenges they face while performing financial analytics is that the BI tools, they use store the closest approximation value of the original value instead of the original value itself. This difference can sometimes bring inaccuracies for high-value transactions and affect your decision-making process.

Therefore, it’s imperative to use the original values for calculations to perform banking analytics efficiently. Some BI tools like Excel can support numerical values up to 15 digits; after 15 digits, it rounds off the large numbers, resulting in inaccurate decisions.

Kyvos eliminates these limitations by offering decimals support with precision up to 38 digits and a scale up to 20. It enables enterprises to store the exact value of the number, so there is no margin left for inaccurate decisions. Kyvos also enables enterprises to model complex data and perform interactive ad hoc analysis on critical financial KPIs that can help make more accurate and faster management decisions.

Read this Financial Analytics blog to learn how Kyvos transformed financial analytics with extreme decimal support.

Transform Analytics with Kyvos

Today, the BFSI industry needs deeper and faster analytics that can help them reduce risks, optimize business operations, and deliver seamless service to their customers. With Kyvos, they can analyze as much data as they need with the ability to deep dive into transaction-level details.

If you want to transform financial reporting for your enterprise, Schedule a demo now.