Next Generation Analytics: What Winning Organizations Need to Succeed in the Next 3-5 Years
May 18, 2022 | Allied Solutions
Strategic planning requires the right insights. But that’s easier said than done, especially as you start evaluating analytics solutions available in the market. So many solutions promise to be the single answer to your data needs, and yet, they only provide a partial view. As you work to get answers to your remaining questions, you may end up with multiple platforms addressing different needs.
The problem? Different platforms producing different reports means you’re analyzing multiple, and possibly conflicting, results. You may be spending significant time pulling multiple reports and trying to make sense of what they mean when analyzed together – leaving you with a fragmented and unreliable view as you plan for the future.
And with so much uncertainty in the economy, it’s becoming increasingly important to have the right insights to stay ahead of the competition and keep up with evolving borrower trends. This means understanding who your most profitable consumers will be (not only now but into the future), what product offerings make sense based on their needs, and how to price correctly under different scenarios.
During part one of our Analytics Reimagined Series hosted with Deep Future Analytics (DFA), our panelists discussed the top three ways that predictive analytics can help fuel significant growth over the next 3-5 years, even amidst economic uncertainty:
1. Adapt to fast growth and changing business models.
Growth-related topics for financial institutions are dominating headlines – everything from mergers and acquisitions to financial institutions investing in fintechs – all while interest rates are surging, which may impact loan demand and loan quality. So what does that mean for your growth plans, and how do you know what the right move is for your organization?
The panel shared key insights into how you can leverage analytics to effectively evaluate growth opportunities including:
- Identify profitable consumer segments and optimize pricing strategy, volume, and financial forecasts.
- Proactively analyze M&A targets and model your portfolio and P&L under future economic scenarios.
- Accurately model and forecast growth and diversification strategies with a $2.7T collaborative data pool.
2. Navigate economic risk and uncertainty.
We’re swiftly approaching uncertain economic times. Inflation, rising interest rates, and recession risk are causing significant concern across the industry.
To prepare, financial institutions should be considering the following:
- Leverage integrated and interactive economic scenarios that enable real-time stress testing across your business.
- Forecast charge off, yield, pre-payment, and profit at the account level to proactively identify risks and opportunities.
- Model deposit pricing and demand against loan pricing and demand by segment to optimize profitable relationships.
3. Boost business productivity and profitability.
Businesses across the country are grappling with operational challenges including hiring and retaining top talent, and financial institutions are no exception. On top of that, the growing demand for digital-first lending is resulting in rising numbers of branch closures even as the pandemic slows down. How do you optimize productivity and profitability in our current environment?
Analytics are a powerful tool to address productivity and profitability challenges by enabling the following:
- Analyze and forecast your most profitable consumers, segments, and products – and then focus on them.
- Proactively track and model how your investments in facilities and technology really connect to profitability.
- Navigate a dynamic environment with a dynamic and active pricing optimization strategy.
To access the full webinar recording and presentation slides, register for the three-part Analytics Reimagined Series to be emailed the content for part one, and to be signed up for parts two and three:
- June 9: Is Your Compliance Solution Auditor Ready?
- August 31: Unlock Your 2023 Strategic Planning
About Allied Solutions
Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology-based products and services customized to meet the needs of over 4,000 banks and credit unions, along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains several offices strategically located across the country and is a subsidiary of Securian Financial Group, Inc.
Content in the blog posts are the opinion and views of the writer, and don't necessarily reflect the opinions or views of Allied Solutions.