Well, that’s now been supplanted by interactive business intelligence (BI), which is basically the same thing, only using technological tools and systems to gather, store, access, and analyze data trended over time to help your financial institution’s leadership make strategic decisions. It also refers to the ability to identify a key piece of information and then click on it to drill to the detail behind it. While there are multiple tools available that do this, most of them are geared towards retail, manufacturing and other industries, and incorporate little about the banking environment.
BI’s Value in Banking
Business leaders in banking have very specific needs, which can’t be fulfilled by technology created for tracking physical inventory. Business intelligence offers value to banking executives when it’s able to deliver real-time reports on their loan portfolios, profitability of subsidiaries and acquisitions, and the performance of certain types of products. When your leadership team is reviewing the performance of a particular pool of loans they don’t want to be looking at information that’s two weeks out of date. That’s what happens, though, when all you have available is historical data, or your staff needs to collect information from multiple sources and compile what’s needed on spreadsheets. This is a costly and time-consuming ongoing business model.
The Current State of Affairs
The scenario above faces most banking executives today, however. Many organizations have holding companies with several different subsidiaries that make up the bank’s business.
Each subsidiary has its own income statement, assets, liabilities, etc., and in multiple instances compiling regulatory and management reports is a very manual process. When the leadership wants to know where things are at mid-month, waiting until 14 days after the month-end reports are consolidated doesn’t help much. They want to look at current information and drill directly to the details to understand what’s driving the change or anomaly.
What Banks Really Need
To get the true value of business intelligence, it’s paramount for everyone in your financial institution to be able to access the data they need at the time they need it. That means being able to generate and view trending information onscreen with a simple click. This is best accomplished using a central repository of up-to-date information and a browser-based reporting tool having the ability to drill down to the source details. Implementing an effective BI solution will also allow for more effective resource utilization as well.
The Good News
Fortunately for bank execs, there is now a solution to all of these issues. JOHO OneSource™ offers the financial industry a data warehouse solution that enables customized access for all bank employees that uses the same information from the same sources and provides access to only what the user needs to do their particular job.
Whether that’s a leadership view for identifying future product potential, or a teller view to provide good customer engagement, BI makes it possible for everyone in your organization to deliver exceptional service and contribute to the profitable growth of the institution.