The Importance Of Advanced Banking Analytics Amid The Pandemic

Posted by PegasusKnowledge on November 25th, 2020

It is no secret that the global banking industry has been undergoing a radical transformation even before the first wave of COVID-19 hit all the major countries. Big data and AI received significant attention during the pre-pandemic era. In fact, many major banks adopted advanced analytics solutions and predictive analytics in wealth management to prepare themselves for what many believe was one of the most prosperous periods ever since the Great Recession of 2008.

But then, the pandemic struck and the adoption of AI tech and wealth management analytics solutions immediately became a critical necessity. The virus is largely responsible for causing major disruptions in the way business is conducted and this has also led to greater and faster implementation of predictive analytics technologies.

The hyper-competitive market and increasing customer expectations jas led to the demand that banks turn to digitization, fintech, and more to stay ahead of the curve and to boost their revenue margins year after year. But so much more has changed amid the “new normal.” COVID-19 is driving buying decisions, shaping customer behavior, and also giving rise to employee safety concerns in the extremely essential banking industry. Along with it being largely responsible for a bearish economy, it has brought a whole set of risks and uncertainties to the financial landscape.

Interestingly, not only can banks play an important role in mitigating the spread of the virus by offering digital experiences to customers, but they can also use the power of predictive analytics and advanced banking analytics solutions amid this economic downturn to drive their business.

Predictive Analytics In The World Of Banking Amid COVID-19

Did you know that the healthcare sector is tapping into the potential of predictive analytics to combat the increasing number of COVID-19 cases? Predictive analytics is nothing but the harnessing of data, algorithms, and other machine learning techniques to identify future outcomes on the basis of available historical data.

Naturally, predictive analytics can prove to be a boon in the realm of wealth management and banking, especially amid such unprecedented times. For starters, it can be helpful in forecasting the changing priorities of customers. Individuals around the world are diverting significant financial resources towards maintaining their health. In such a scenario, banks can offer personalized experiences and help their customers discover their specialized offerings through updates and targeted marketing with the help of advanced wealth management analytics.

In addition to this, there is a major employee crunch because of the physical distancing measures that have been in place across the world. Given that remote working and virtual communication seems to have become the order of the day, banking analytics have been extremely helpful in matching customers with the right advisors within a matter of seconds.

Having access to high-performance analytics amid these turbulent business conditions can be critical to your business’ bottom line. It will be instrumental in assessing risks pertaining to liquidity management, identify fraudulent transactions at a time when online transactions are on the rise, and provide valuable insights to mitigate future losses and balance sheet vulnerabilities.

As people are now spending more time at home, this is also a great opportunity to offer segmented services to your bank’s customers that are in line with the present market conditions. Advanced data analytics can be deployed to bring together huge, complex data sets ranging from customer demographics, credit card systems, usage of financial products to categorize customers, identify similarities and ultimately enhance the effectiveness of your marketing campaigns.

By tapping into their data resource, banks can now walk the extra mile and tailor the experience of each individual to help out with mortgage refinancing, business lending, targetted home financing offers, and so on. Not only will it take banks closer to enhanced sales and boost their brand’s reputation, but it will also help them to retain their older, loyal customers. This is very important for financial institutions, regardless of their size and global presence.

Moreover, now is perhaps the best time for small- and mid-sized banks to step up and help individuals and businesses to navigate through the difficult financial landscape. Let’s not forget that the massive lockdowns that swept the world in the months of April-May 2020 inevitably led to the closure of several small businesses and caused serious losses. Banks can strategically boost brand loyalty while being of assistance as far the management of finances is concerned and through the deployment of proactive, solution-focused marketing tactics. They can provide education so that customers can make better, well-informed financial decisions. All this will become easier with the adoption of advanced banking and wealth management analytics.


Data has always been extremely important for banking professionals throughout the decades. It won’t be an exaggeration to say that it is the lifeblood of the banking and finance sector and has always played a big role in the transformation of banks around the world and their ability to cater to the needs of its valued customers. Implementing predictive analytics solutions in wealth management and banking would indeed be extremely helpful in generating more business, especially for small and mid-sized banks and financial institutions amid the pandemic.

Author’s bio: The writer is a financial analyst and this article is about the importance of advanced banking analytics amid the pandemic.

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