Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

MOBEY FORUM: TIME FOR FINANCIAL INSTITUTIONS TO GET SERIOUS ABOUT PREDICTIVE ANALYTICS

The window is closing for banks to leverage their data to get ahead in digital services, says new report from Predictive Analytics Working Group

Banks and financial institutions that are not yet engaged with Predictive Analytics need to begin their journey today if they are to maintain future competitiveness in digital services. This is the view expressed by the Predictive Analytics Working Group at Mobey Forum in its inaugural report entitled ‘Predictive Analytics in the Financial Industry – The Art of What, How and Why’.

“Banks have great data but if they want to compete in the digital age they need to get more strategic and more professional about how they use it,” comments Amir Tabakovic from BigML and Co-Chair of the Predictive Analytics Working Group, Mobey Forum. “The PSD2 regulation will soon force banks to provide access to account data through third party APIs. This means that if the banks don’t leverage their data soon, someone else will! The huge influx of new, specialist, data-centric players in digital financial services also means that the field is already becoming common place amongst the ‘new breed’; new services underpinned by predictive analytics are enabling the next generation service providers to extend their lead.”

“The competitive threat is not only from the new disruptors,” adds Kasper Sylvest from Danske Bank and Co-Chair of the Predictive Analytics Working Group. “Many innovative banks are already on board with predictive analytics. Their next step will be to use the new insights and forecasts generated to enhance the digital banking experience of customers with better service design and the creation of new and differentiated value. Banks without a data-driven strategy are now taking serious risks with their future; disintermediation is in full flow and data analytics underpins it all.”

The new report from Mobey Forum, the global industry association empowering banks and other financial institutions to lead in the future of digital financial services, explores the most important components, challenges and key application areas in the predictive analytics field.

The report contends that financial institutions should ‘think big, start small but start now’ and work on building a digital services infrastructure with data analysis at the centre, which can be leveraged to support the whole business over the long term.

“The threat is real, but there is also huge opportunity for banks in this field,” adds Sirpa Nordlund, Executive Director, Mobey Forum. “From now on, it’s all about the data. With predictive analytics banks can not only generate a 360 degree view of their customers’ financial behaviour, they can anticipate their needs and create highly personalised services that surprise and delight them too, cementing their relationships for the long term.  Banks can establish greater relevance and appeal, increase trust and ultimately create a more stable commercial and operational footing in the digital age.

“Obviously this is a huge topic. This report is the first in a series and establishes some of the basics. We look forward to issuing further reports as the group continues its analysis.”

Predictive Analytics in the Financial Industry – The Art of What, How and Why will be of interest to banks and other financial institutions, together with mobile payments and technology developers serving the financial services industry. The report can be downloaded free of charge from the Mobey Forum website.