One of the largest issues faced by financial institutes is credit card fraud. Though many organisations are fighting and assisting in fund recovery, few only try to find underlying causes. Advanced analytics can come into play and track the anomalies in transaction patterns and take appropriate actions.
According to Remco den Heijer, VP, ASEAN, SAS Institute Inc, the response timing of the bank is crucial in such cases and recover the stolen fund. Analytics can not only help in finding anomalies but also use sophisticated predictive analytical models to find out any potentially fraudulent transactions before customers can detect.
Adoption of advanced analytics in business is becoming crucial day-by-day. It will help them to transform processes and become more effective and cost-effective. Banks can detect early fraud and save on compensating customers who became victims of credit card fraud
Businesses can sell credit cards at a lower interest rate and be more competitive as they don’t have to take care of fraudulent charges and also cut down on staff in call centers for dealing with customer complaints.
With the acceleration of digitalization in almost every business, the amount of gathered data is enormous and provides valuable insights if analyzed. The value of data exists with its analytics. Businesses need to take analytics in strategic planning and apply it across all functions, roles, and processes. It allows us to better predict future outcomes. Businesses need to be more data-driven in identifying opportunities and addressing challenges they are facing today.
The biggest hurdle for businesses towards advanced analytics is Cost. The adoption cost is perceived as very high for the company. But with the advancement of cloud technology, this barrier is also lowered. Now instead of owning, the subscription-based service model is becoming more prominent.
Cloud computing has empowered to access any computing with just a tap from anywhere, anytime, and from any device. Services are becoming more common in the cloud now, from data management to analytics services. Businesses need to be agile and entrepreneurial oriented to implement advanced analytics.
New companies should try on a small scale and try different services available and then go for best suitable for their enterprises. On successful implementation, they can start growing on a larger scale.