Business intelligence tools are indispensable for the financial industry. Integrating business intelligence helps to improve operations by finding, analyzing, addressing and resolving problems in real-time. Though many financial organizations have already begun to profit by leveraging BI tools, the full potential of this technology continues to be unexplored. It is difficult to bring together financial key performance indicators (KPIs), charts and financial statements in a single dashboard. Hence, it is essential to leverage a powerful BI tool that offers analytical capabilities along with visualization. Microsoft’s cloud-based Power BI is one of the most popular tools that provides interactive dashboards. It consists of a wide range of data analytics services like data analytics, reporting and sharing.
In this blog post, we will understand the benefits of integrating Power BI in the financial sector.
Some of the challenges faced by the financial sector
The BFSI sector is dependent on technology to find solutions it needs not only to survive but to succeed in the digital finance age. Here are some of the greatest challenges faced by financial managers today –
1. Meeting the regulatory compliance in finance, automating reporting and audits, and streamlining financial processes
2. Eliminating fraudulent activities by increasing security and simply getting alerted when a suspicious threat is found on any account
3. Retention of customers and once again increasing brand loyalty by providing customers with greater personalization, more automated services, and easier access to services
4. Believing in artificial intelligence to transform nearly every aspect of the financial industry from automated wealth management to customer verification.
5. Apart from all these challenges, one of the biggest challenges is how to evaluate large volumes of data and turn them into valuable market insights that continue to drive the decision-making process to stay ahead of the competition rapidly and effectively.
Financial organizations have data stored in different systems, making it difficult to provide relevant, accurate and on-demand information when required. This is where data analytics becomes of the utmost importance to the BFSI industry.
Why Power BI Dashboards are the new edge of Business Intelligence
- Introduction to Power BI
- Role of Power BI in data visualization
- Getting started with Power BI
- Benefits and business cases
- Dashboards and visualizations
Role of Power BI for financial services
Microsoft Power BI is a powerful tool that is used to run reports and surface insights based on client results. Power BI can easily be integrated with a wide variety of data sets to provide actionable information that is easy to understand. Reports and visuals created from these data can then be shared with other users for improved decision-making. Using Power BI, BFSI companies can not only analyze what has occurred in the past and what is happening in the present but also what to predict for the future.
Generating new business opportunities using Power BI analytics
Let us take a look at some of the financial metrics that can be monitored using Power BI, and how this helps BFSI enterprises with generating new business. Using the Power BI dashboard in financial operations, you can easily track and analyze the related financial KPIs and metrics in a collection of interactive and easy-to-use visualizations.
- Financial performance analytics – Provides a way to convey the key financial metrics of your balance sheet over time to ensure long-term stability and success.
- Cash management analytics – Opens the door to express the liquidity and cash flow over time.
- Profit and loss analytics – Offers a roadmap to collect information on the income statement over time, in accordance with the related financial indicators.
- Fraud detection analytics – Addresses techniques such as stratification of numbers, duplicate transactions testing, falsified numeric values and validating entry dates to detect suspicious activities.
9 Noteworthy benefits of Power BI consulting services for BFSI organizations
1. Power BI is capable of processing large amounts of data so financial institutes can feed large quantities of data without struggling to process them.
2. The built-in machine learning (ML) capabilities of the Power BI platform can analyze data and help BFSI companies to identify valuable financial trends and make well-informed predictions.
3. Information can be visualized using powerful templates to allow BFSI institutions to gain a better understanding of their financial figures.
4. Power BI is a cloud-based platform, therefore financial organizations can expect cutting-edge intelligence capabilities and powerful algorithms that are updated at regular intervals.
5. Power BI offers excellent personalization capabilities through which organizations can create their dashboards to quickly access any financial data they need.
6. BFSI companies also gain the facility of setting up KPIs to keep their critical metrics and measurements updated.
7. Power BI comes with an intuitive interface that makes it much more user-friendly and easier to navigate compared to complex and time-consuming spreadsheets.
8. Power BI tool easily integrates with other popular business management tools such as SharePoint, Office 365, and Dynamics 365 as well as many other non-Microsoft products including Spark, Hadoop, Google Analytics, SAP, and Salesforce so your organization can perform better.
9. As far as data security is concerned, BFSI organizations need not worry because Power BI ensures that data is safe by providing granular accessibility controls both internally and externally.
In a data-driven market, business intelligence and analytics are important to empower competitiveness as well as delight your customers. With its ease of use, intuitive features, and advanced machine learning capabilities, Power BI in financial services gives the ability to make their data financially viable. If you would like to know more about the importance of Power BI for financial services, get in touch with our Power BI consultants today.