by Kevin Faber

Three Ways that Financial Institutions Can Capitalize on Real-Time Analytics

2 years ago | Posted in: Business | 894 Views

Today, financial services companies need access to real-time data to operate efficiently. For a business to capitalize on the ever-increasing amounts of data and stay relevant, it has to leverage real-time analytics. That has resulted in widespread changes in how financial services companies operate. Below are three ways that financial services companies can capitalize on real-time analytics.


Trading is one of the fields that real-time analytics has impacted significantly so far. With real-time analytics, financial services companies can now have easy access to both present and historical data. As a result, it takes seconds for financial institutions to make informed decisions based on real-time analytics. Often, real-time data is only valuable for a short time. Therefore, an enterprise should have the fastest means of analyzing data to remain competitive on Wall Street. For example, apps such as apache kafka take a second or less than a second to analyze transactions. Over time, real-time analytics has resulted in a dramatic transformation in the business world. Nowadays, financial institutions such as banks and trading firms are gaining competitive advantages by leveraging real-time analytics to increase business growth, real-time insights, and processes efficiency. Real-time data and analytics help banks and trading firms to understand customer purchasing patterns and identify areas that need improvement. That helps managers to develop a strategy to optimize resources utilization and devise a preventative plan to reduce downtime and maintenance costs.

Fraud Detection

One of the critical concerns of financial institutions is fraud detection. Real-time fraud detection ensures that financial services companies operate with as few losses as possible. Today, banks and trading firms have to deal with fraud resulting from system hacking and identity theft. For example, the value of fraud cases reported in the United Kingdom totaled $1.36 billion in 2017, which is about 55% increase over the previous year.

However, real-time data is helping banks and trading firms to avert these threats. Real-time analytics has also transformed how financial institutions detect and address these threats. Trading firms and banks can now use real-time analytics to analyze and model customer behavior to identify suspicious transactions. While real-time analytics technique has been in existence in some form for some time now, it will help financial institutions to reduce cases of fraud significantly. Financial institutions can now use the data at their disposal as well data analysis techniques to streamline their processes and secure their systems.

Customers Engagement

Like many other industries, trading firms and banks are revolutionizing their consumer data to optimize their marketing efforts. Consumers in the financial services industry are generating approximately 2.5 Exabyte of data every day. As a result, banks and trading firms are tapping into this ocean of data to improve their relationship with customers. Real-time analytics is revolutionizing almost every process in the financial services industry. It has transformed how banks offer their services as well as how consumers use banking services. Over time, these two banking aspects are becoming more and more personalized. Real-time data has made it easy for banks to extend the lifetime value of each customer. A disengaged client base can cost a company millions of dollars in the form of customer turnover. Capitalizing on real-time data can help an enterprise to understand customer behavior and reduce customer turnover. Real-time data helps financial institutions to offer their customers technical support and listen and respond to their feedback.

Over the last decade, trading firms and banks have realized significant advances in data analysis. Financial institutions are now gaining access to efficiencies and new opportunities through the use of a wide range of workplace solutions such as mobile devices to gather real-time data. By leveraging real-time data, companies can now function like a well-lubricated machine. Financial institutions attribute their success to the ability to examine data through advanced techniques. The results of real-time analytics are increased efficiency, improved system security, and engaged customers.


by: Kevin Faber 

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