This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

Analytics in Banking

Taking a fresh look at your challenges


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.

Three business drivers increase the importance of analytics within the banking industry

  • Regulatory Reform – Major legislation such as Dodd-Frank, the CARD Act, FATCA (Foreign Account Tax Compliance Act) and Basel III have changed the business environment for banks. Given the focus on systemic risk, regulators are pushing banks to demonstrate better understanding of data they possess, turn data into information that supports business decisions and manage risk more effectively. Each request has major ramifications on data collection, governance and reporting. Over the next several years, regulators will finalize details in the recently passed legislation. However, banks should start transforming their business models today to comply with a radically different regulatory environment.
  • Customer Profitability – Personalized offerings are expected to play a big role in attracting and retaining the most profitable customers, but studies show that a small percentage of banks have strong capabilities in this area. The CARD Act and Durbin Amendment make it even more important to understand the behavioral economics of each customer and find ways to gain wallet share in the most profitable segments.
  • Operational Efficiency – while banks have trimmed a lot of fat over the past few years, there is still plenty of room for improvement, including reducing duplicative systems, manual reconciliation tasks and information technology costs.


Material on this website is © 2014 Deloitte Global Services Limited, or a member firm of Deloitte Touche Tohmatsu Limited, or one of their affiliates. See Legal for copyright and other legal information.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see “About Deloitte” for a more detailed description of DTTL and its member firms.

Get connected
Share your comments


More on Deloitte
Learn about our site