Why Financial Institutions Need an Analytics Sandbox

Experian is a CMA credit reporting partner.

The appetite for businesses incorporating big data is growing significantly as the data universe continues to expand at an astronomical rate. In fact, according to a recent Accenture study, 79% of enterprise executives agree that companies that do not embrace big data will lose their competitive position and could face extinction. Especially for financial institutions who capture and consume an incredible amount of data, the challenge becomes how to make sense of it. How can banks, credit unions, and other lenders use data to innovate? To gain a competitive advantage?

This is where analytics sandboxes come in.

A sandbox is an innovation playground and every data-consuming organizations’ dream come true. More specifically, it’s a platform where you can easily access and manipulate data, and build predictive models for all kinds of micro and macro-level scenarios. This sounds great, right? Unfortunately, even with the amount of data that surrounds financial services organizations, a surprising number of them aren’t playing in the sandbox today, but they need to be. Here’s why:

Infinite actionable insights at your fingertips
One of the main reasons lenders need a sandbox environment is because it allows you to analyze and model many decisioning scenarios simultaneously. Analysts can build multiple predictive models that address different aspects of business operations and conduct research and development projects to find answers that drive informed decisions for each case. It’s not uncommon to see a financial services organization use the sandbox to simultaneously:

  • Analyze borrowing trends by type of business to develop prospecting strategies
  • Perform wallet-share and competitive insight analyses to benchmark their position against the market
  • Validate business credit scores to improve risk mitigation strategies
  • Evaluate the propensity to repay and recover when designing collection strategies

A sandbox eliminates the need to wait on internal prioritization and funding to dictate which projects to focus on and when. It also enables businesses to stay nimble and run ad-hoc analyses on the fly to support immediate decisions.

Speed to decision
Data and the rapid pace of innovation makes it possible for nimble companies to make fast, accurate decisions. For organizations that struggle with slow decision-making and speed to market, an analytics sandbox can be a game changer. With all your data sources integrated and accessible via a single point, you won’t need to spend hours trying to break down the data silos for every project. In fact, when compared to the traditional archive data pull, a sandbox can help you get from business problem identification to strategy implementation up to 30% faster, as seen with Experian’s Analytical Sandbox:

Analytical_sandbox


Cost effective analytics

Building your own internal data archive with effective business intelligence tools can be expensive, time-consuming and resource-intensive. This leaves many smaller financial services at a disadvantage; but sandboxes are not just for big companies with big budgets. An alternative solution that many are starting to explore is remotely hosted sandboxes. Without having to invest in internal infrastructure, this means fast, data-driven decisions with little to no disruption to normal business, fast onboarding, and no overhead to maintain.

For financial institutions capturing and consuming large amounts of data, having an analytical sandbox is a necessity. Not only can you build what you want, when you want to address all types of analyses, you’ll have the insights to support business decisions faster and cheaper too. They prove that effective and efficient problem solving IS possible!

CMA offers solutions, such as Experian and other bureau credit reports, Industry Credit Groups and more to help companies determine how much business credit to extend. For more information on how we can help your company, contact Credit Management Association at 818-972-5300 or visit www.CreditManagementAssociation.org.

This article originally appeared here and has been reprinted with permission.

Dun & Bradstreet Announces New Brand Modernization

DB_WORDMARK_Pantone

Dun & Bradstreet (NYSE: DNB) recently unveiled a new brand purpose, values, tagline and logo as part of a major brand modernization effort. The company’s new creative expression and tenets are rooted in a data inspired, relationship-driven approach, bolstered by the new tagline: “Growing relationships through data.”

The announcement comes on the heels of a yearlong activation of Dun & Bradstreet’s new growth strategy, which has included both internal and external investments across the business, and a revitalization of the company’s global culture. Dun & Bradstreet has made a number of strategic acquisitions to expand capabilities, and formed alliances and partnerships to more simply and efficiently deliver key data, insights and analytics to customers.

“Data is the key driver of innovation in today’s business environment, and we have continued to invest in this differentiating asset. But decisions, inventions and investments are made by humans, and we help customers make sense of the massive amounts of data they have to connect them with the people, ideas and opportunities that matter,” said Bob Carrigan, chief executive officer & president, Dun & Bradstreet.

CEO Bob Carrigan joined Dun & Bradstreet in October 2013 with a vision to build long-term sustainable growth and modernize all aspects of the company. Carrigan, with support from the executive leadership team, is leading that vision with a far-reaching brand modernization that will be implemented within Dun & Bradstreet’s products and solutions, content delivery, go-to-market strategy, internal employee programs and all external positioning.

For more information about Dun and Bradstreet’s products, contact Terry Campos at 818-972-5361 or tcampos@emailcma.org.

Preventative Maintenance For Credit Groups – Larry Convoy

Warning Lights

Credit groups like automobiles have warning signals when something is not operating as it should be.  Having just seen my own car’s dashboard light up like a Christmas tree due to a worn power steering belt, I think being aware of the signs and a little preventative maintenance might keep your credit group running for many more years.

Reports are FLAT – Are group members just entering the same accounts monthly on your Past Due /Meeting Review reports.  Is the company that filed for bankruptcy in January or the business that closed its doors in March still being reported?  Remind them that they should be adding new accounts and deleting expired ones each month. One solution is to contribute their full accounts receivable to CMA, set the reporting parameters (for Past Due) and let CMA do the rest.

Attendance STALLING – With www.anscers.com providing instant information, many feel attending the meeting is not necessary. Members must be reminded that meetings support the online data. Meetings give you access to professionals who know who to call in AP to collect, members can explain how to file a lien or small claims action and can share other best practices that can save your company $$$. Our speaker program is a great resource to educate. Make each meeting a learning experience.

Membership needs TUNE-UP – Groups used to grow by adding companies selling common products (steel groups add steel manufacturers). With businesses consolidating, moving offshore or just closing up, consider adding companies selling the common customer. Our Door and Window Network has recently added companies selling hardware, different product but common customer. Look at your customer, what other types of vendors are selling them.

Let’s use the last 4 months of 2011 to refresh tired reports, call absentee members and think outside the box for group expansion. Spread the idea that one trade line reported, one comment at a meeting or alert from a new member could make a significant impact on your company’s bottom line and your job.

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