Analytics in Banking
The banking sector is rife with change and uncertainty. How will changes in banking laws and regulations affect profitability? What should be the framework of stress scenarios, including specific regulatory scenarios and guidelines? What is needed to correctly measure each business line’s different risk characteristics (e.g. loans, CDO securities, structured products, derivatives)? Where can we more effectively apply better customer models to reduce losses and focus growth? These questions are fraught with ambiguity and there are no easy answers.
It is difficult to understand the current complex environment, much less to predict the future with any degree of confidence. Banks need more in depth information to answer these and identify additional questions to effectively manage risk and drive risk-adjusted performance. Leveraging business analytics may help turn data into information that can provide these answers.
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