IBM Smarter Analytics for Financial Services
In a time of diminishing customer trust and loyalty, intense competition for market share and ever-expanding regulations
that require new levels of reporting and risk management, banks are under great pressure to adapt and evolve. Insurers, faced
with similar intense competition and diminishing customer loyalty, commoditization of insurance products and an increasingly
regulated and complex risk environment, are undergoing a fundamental change in the way they do business. By finding
new ways to effectively face these challenges, financial institutions can significantly improve their ability to increase
revenue, profitability and growth. For these reasons, analytics has become the new business imperative for financial
institutions. Its reach extends well beyond the realm of IT, as business leaders turn to analytics to transform mountains
of data into new ways of mitigating risk, increasing revenues, achieving new operational efficiencies and improving customer
service. IBM’s approach to this rapidly growing market is Smarter Analytics.
Smarter Analytics is a holistic approach that turns information into insight, and insight into business value. It allows
organizations to grow, retain, and satisfy customers, increase operational efficiency, transform financial processes and
manage risk, fraud, and regulatory compliance. IBM's Smarter Analytics approach helps clients to align their organization
around information; anticipate, predict, and shape business outcomes, and act with confidence at the point of impact. This
approach enables an organization's people and systems to learn from the outcomes of decisions and leverage the learning from
each iteration to transform the way their organization operates towards delivering better outcome.
Business analytics can help financial institutions address these challenges in three key areas:
- Customer analytics – Anticipate customer needs, understand profitability at an account level, improve
marketing effectiveness and cross sell programs, and personalize service interactions to optimize the interconnected factors
that affect customer lifetime value.
- Operational efficiency – Banks can gain actionable insights into business and financial performance,
improve payments processing and fraud detection, reduce costs and respond more quickly to market and regulatory changes.
Insurers can fast track claims and reduce reserve requirements by predicting the complexity, severity and likelihood of fraud,
and give executives a clear view of business and financial performance.
- Risk management and compliance – Better understand, govern and communicate risk across the enterprise,
integrate risk insights into daily decisions, and address regulatory compliance requirements with IBM OpenPages Operational
Risk Management and Government Risk & Compliance platform software and Algorithmics, an IBM company, financial risk management
Bringing together information management, enterprise content management and business analytics software capabilities
with the technical expertise of IBM Research and the deep consulting prowess of Global Business Services, IBM Smarter Analytics
marries the latest in predictive analytics with the power of big data to help clients achieve astonishing new business outcomes.
As an example, in the video Smarter Analytics Allows Organizations to Drive and Capitalize on Change, SunTrust and other institutions
discuss how IBM Smarter Analytics has helped them achieve a competitive advantage. For insurance, see how using business
intelligence to reveal underperforming businesses and possible causes, Selective Insurance developed an analytics-driven growth strategy and grew commercial line books by 280
Ultimately Smarter Analytics is about financial institutions deriving greater insight and achieving improved business
outcomes by putting their data to better use.
To learn more about IBM’s Smarter Analytics approach, we encourage you to:
Additional ways to stay connected: On LinkedIn: join Smarter
Financial Services and Smarter
On Twitter: follow IBMBanking and
IBM Insurance Blog
Connect virtually: Smarter
Banking & Financial Markets Virtual Briefing Center and Smarter
Insurance Virtual Briefing Center