They say, “data is king.” And it’s true. Fail to analyze your data, and your business could end up paying the price. In fact, poor data analysis is said to cost organizations in the region of $12.9 million per year. However, we at HES argue that it’s not just having the data that counts, it’s in knowing how to transform it into actionable insights that really matters. And that’s where Business Intelligence comes in.
While business analysis and intelligence have been around for a while, it’s only in the last few years that we’re seeing it come to its full potential. Smart BI solutions are delivering companies the power to automate, and improve BI processes making them more efficient, insightful, and faster—and 97.3% of executives agree.
But how do these tools work exactly? Let’s start by taking a look at what business intelligence is and BI in lending can do for your business.
What Is Business Intelligence?
Business intelligence (BI), as we know it today, is a smart solution that uses software and services, such as cloud solutions, to transform data and turn it into business insights. But what does that mean exactly?
Business intelligence solutions can be in the form of:
- Charts
- Maps
- Graphs
- Dashboards
- Reports
- And more
BI integrations in finance, among other industries, are designed to present data in an easy-to-understand format that highlights market gaps, areas for improvement in customer satisfaction, potential markets that could prove fruitful for the company, and so much more, empowering decision-makers to make smarter business choices.
That said, BI tools aren’t just about making decisions. At the same time, these data-based insights can be harnessed to give a deeper understanding of the company’s potential and current clients, and their needs.
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Why Do You Need BI Integrations in Your Lending Software?
BI tools are essential to helping you establish market reality from the clamor and building a client-first strategy that works.
BI integrations in lending help your business to:
- Gain deeper client and business insights to establish your borrower market and how best to connect with them.
- Establish market trends and gaps to learn how your customers are likely to borrow now and in the future. Or whether there are potential opportunities to look out for.
- Undertake a competitor analysis to establish who your major lending competitors are and what they are offering.
- Improve your customer satisfaction strategy by understanding consumer pain-points and challenges when interacting with your organization.
- Become more efficient by optimizing lending processes such as onboarding or approval process
- Make smart business decisions
- Tailor lending offerings to suit client need
- And much more
Top 5 Areas of BI Implementation for Your Lending Business
BI allows you to collate data in a usable format, so whether your CEO is looking for a spending breakdown, the CFO needs financial stats or the investor is seeking justification for work done, all the data you need is at your fingertips.
Let’s take a look at some of the top BI solutions available today.
Financial performance monitoring
With BI tools you can monitor financials daily and close month end faster. It provides daily balance sheet updates and income statements to identify loan trends and enable more reliable predictions for the monthly performance based on factual data. The loan management software helps lenders to track lending KPIs, interest accruals, pinpoint areas of profitability, reveal warning signs, and compare monthly breakdowns in a simple and informative way.
Loan portfolio performance monitoring
With BI integrations in lending software, employees have loan sales figures at their disposal daily. It helps to check out dashboards to see how many loans were disbursed, if the business model updates are effective, if the operating targets are met, or what the average interest rates for new loans are.
Lending businesses can identify loan portfolio risks, monitor product profitability, and identify trends, as well as filter data by region, office or loan officer. BI integrations in lending can be used to establish behavioral patterns of target groups, high risk and more, allowing your business to take action before it’s too late.
Marketing opportunities
Armed with data about your clients and the market in general, you can begin to establish patterns that will allow you to make marketing decisions for your business. Perhaps, you have identified a new client niche, a wider range of opportunities to cross/up-sell your products to meet consumer needs, or even a new channel to market that better connects with your customers, all leading to increased interaction with your brand and boosting selling power. Improve your client understanding and boost your CRM (customer relationship management processes when you need them.
Strategic development and tailored offerings
Intelligently utilized data is a powerful planning tool for your business. Not only can it boost profit by identifying market needs, but it also allows you to better understand your clients and adapt your strategy to suit them. For example, these may be tailored offers or even personalized lending plans that suit your actual customer base, not a presumed one—giving you the competitive edge to challenge your competitors’ weaker offers.
Boosted customer retention potential
Getting new clients is great for any business. However, increasing your retention rate is one of the best ways to improve profitability. If only it was that simple. In the US, when asked over 33% of commoners stated they’d consider switching away from a business after just one bad experience. Meanwhile, when customer service is done right, customers are more likely to repurchase—5 times more, 4 times more likely to refer you to a friend, and 6 times more likely to try a new offering by your company. Together, all this leads to brand loyalty, customer satisfaction and increased profitability.
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Boosting Customer Service Strategy in Lending with BI Tools
At HES, we specialize in creating loan origination software that allows your business to better understand its customers and their needs. Our configurable lending platforms may include custom Reports and Dashboards. At the same time, we can employ BI solutions to deliver essential data-based feedback when you need it. Due to the data’s visualization, you’ll be able to quickly establish room for improvement and work to increase the success of your company.
BI tools will allow you to access custom reporting tools and dashboard software, empowered by data. Transform all this and more into actionable insights that have the potential to modernize your business now and in the future.
Interested in BI integrations in lending? Contact HES FinTech to explore the opportunities.
