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Top 10 challenges for investment banks in 2015: Insightful analytics (Part 9)

Beat Monnerat, Accenture's senior managing director of financial services for Asia Pacific | Dec. 22, 2014
For the seventh consecutive year Accenture outlines ten of the key challenges facing investment banks in the coming year. Today is the ninth day of Accenture highlighting crucial issues the industry must address.

While CIOs understand the benefits and opportunities that come with data creation, they oftentimes need to convince their colleagues in the C-Suite.  The key message CIOs need to get across is that data creates opportunities to gain insight from analytics, which create opportunities to build business. Potential applications of analytics within the investment bank include help in responding to regulation, margin pressures and operational challenges.

The challenge is determining how to develop and deploy effective analytical tools that extract meaningful conclusions, so as to inform the wider business strategy and support day-to-day processing. The first hurdle for many is in collating and integrating the huge amounts of data now available.

Banks need the right tools. Demand is now moving beyond platforms designed for industrialized data collection, to true data discovery platforms designed to find the "unknown unknowns". Smart data solutions can provide quick insight opportunities based on prior experience and market conditions, while advanced data visualization tools are able to draw on multiple data sources and provide new levels of granularity in a single interface.

But here is a key point where even some of the more data-savvy banks fall down. Banks must ensure that the data-driven conclusions gleaned from multiple data sets are made available to all areas of the bank. Market leaders are making the most of the opportunity to create richer interactions with their clients by providing data and analytics for their trading activity, and portfolio "health checks" in the wealth management space.

While most executives understand analytics can be used to better inform sales, it can also be used to detect misconduct in the front and back office, and for know your client (KYC) and anti-money laundering (AML) decisions, as well as to support better decisions around collateral allocation and cost of collateral.

Analytics is key to smart decision making. Being able to draw factual, data-driven conclusions in order to support analysis of business sentiment or showcase operating trends is becoming a prerequisite for the leaders in the industry.

 

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