Page 46 - Banking Finance October 2025

ARTICLE

Banking on Data: A

Comprehensive

Guide to Data

Analytics

Sheik Nizamudeen D
Chief Manager (IT) Faculty
ULA -Digital Transformation
Powai, Mumba

Data analytics is the systematic process of examining large and varied data sets to uncover hidden
patterns, correlations, market trends, customer preferences, and other actionable insights. It involves
the use of statistical techniques, algorithms, and technologies to transform raw data into
meaningful information that supports decision-making and strategic planning.

Introduction Enhanced Decision-Making: Data-driven insights
enable more accurate and timely decisions,
"Make decisions based on data and not on opinions" This
principle has become essential for banks navigating today's reducing reliance on intuition and enhancing strategic
fast-paced, competitive landscape. In an industry where planning.
financial success hinges on precision and insight, data analytics Risk Management: Analytics assists in identifying and
is no longer a luxury-it's a necessity. Let us dive into the world mitigating potential risks such as credit defaults, fraud,
of data analytics, explaining its significance, lifecycle, and market volatility, ensuring the financial stability of
methodologies, ethical considerations, and emerging trends, the institution.
all tailored specifically for the banking sector.
Customer Insights: Understanding customer behaviour
What is Data Analytics and Why is it and preferences allows for personalized services,
improving customer satisfaction and loyalty.
Important?
Operational Efficiency: Streamlining processes through
Data analytics is the systematic process of examining large
data analysis leads to cost reductions, optimized
and varied data sets to uncover hidden patterns,
resource allocation, and improved service delivery.
correlations, market trends, customer preferences, and
other actionable insights. It involves the use of statistical Regulatory Compliance: Analytics aids in monitoring
techniques, algorithms, and technologies to transform raw and ensuring compliance with regulatory requirements,
data into meaningful information that supports decision- minimizing legal and financial penalties.
making and strategic planning.
Competitive Advantage: Leveraging data analytics
enables banks to anticipate market trends, innovate
For banks, data analytics holds significance due to several
factors: product offerings, and stay ahead of competitors.

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