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Real-time banking analytics

The digital banking transformation has been made possible thanks to the technological advances in recent years and the ability to manage and analyse large volumes of data more efficiently and quickly. This digital evolution has been based on the development of Big Data, Artificial Intelligence and large-scale analytics, such as, for example, real-time data analysis, which is a large part of Latinia’s value proposition, and key to boosting the personalisation of financial services and improving the banking customer experience.

Why should banks choose real-time analytics?

All industries currently recognise the value and power of data as a source of knowledge about the customer; this is especially true for the financial industry. Data analytics, whether they are descriptive, predictive or prescriptive, can detect patterns and customer behaviour in order to predict situations; in this way, companies can make quicker decisions, recommend personalised products and services and, in short, improve the relationship between banks and their customers through convenience and proactivity.

According to David Andrzejek, head of financial services at DataStax for Global Finance & Banking Review, “modern banking services rely on data being used in context and in real time. Consumers today expect their bank to help them manage their money more efficiently and in their best interests.”

Real-time analytics offer the opportunity for banks to consistently tap into customers’ daily lives, identifying the right time to provide the information the customer needs and even getting ahead of problems that may arise regarding their finances. For example, alerting consumers before they make a purchase if it exceeds their available balance, supporting immediate credit decisions or allowing the customer to use a buy now, pay later service. “The possibilities opened up by filtering and analysing transactional events and customer intelligence data in real time are extraordinary. At Latinia we are experts in the development of this type of products and our solutions aim to enable banks to consistently connect with their customers in a personalised way, both inside and outside the bank’s digital channels, anticipating potential problems that may arise and providing solutions in real time”, Francesc Pérez, the Chief Revenue Officer at Latinia, states.

The advantages of real-time analytics

 For John Mitchell, CEO and Co-Founder of Episode Six, “by leveraging real-time analytics, banks are better equipped to create an enhanced customer experience, overcome constraints of legacy technology, drive greater value from customers and combat fraud”, as he explains in this article published in International Finance. Let’s take a closer look at each of these advantages:

  • Maximum experience customisation. Traditional banks must now assert their leadership position in the financial market against new competitors; real-time analytics provide accurate of-the-moment insight into customer behaviours, preferences and financial history. Technology and data provide valuable knowledge about customers and help build stronger, longer lasting and, above all, more bespoke relationships.
  • The fight against cyber fraud. Real-time data analytics help to detect and monitor fraudulent transactions, thus mitigating the impact of cyber crimes on the financial sector. Banking needs to move towards the widespread application of this type of analytics to meet today’s challenges and, at the same time, learn to prevent new fraud techniques.
  • Opportunity for growth. The impact of real-time analytics on the business model of financial institutions is significant and will be amplified by the increasing deployment of artificial intelligence, which will enable a more intuitive and advanced analysis of knowledge about the customer.
  • Driving the technological transformation. The desire to take advantage of all the options that real-time analytics offers banks is driving a technological overhaul in the sector. It does not matter that the technological infrastructures of banking were developed decades ago, as there are many alternatives.

In order to implement the new real time marketing systems, banks can opt into partnerships with specialised companies that provide the necessary technology which adapts to the infrastructures of each institution. Latinia’s products are designed specifically for the financial sector and have multiple deployment options: “Traditional or using an orchestrator, by distributing On-premises/Cloud-PaaS modules via an orchestrator (Kubernetes, OpenShift), or selecting how to distribute them for the optimal performance of data upload to the cloud: these options give as many options as the bank has and as many stages as the bank needs,” concludes Francesc Pérez.