Mastering Data Visualization in Banking: Tools and Techniques for Better Decision-Making

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For modern banks, data is a most valuable asset. However, terabytes of raw data do not help if there is no efficient way to analyze and visualize them. And it is precisely at this stage that data visualization crops up. This way, banks can easily map out trends, anticipate future risks, and even make top-notch decisions in record time since the data is easier to handle in visual formats. 

KPMG survey reveals that 67% of the banks are eyeing to bolster their investments to AI enhanced data analytics in the next two years. However, 3D visualization and virtual reality (VR) in financial analysis can also be added to engage with the data in a virtual setup.

This could revolutionize the way we interpret complex financial models and large datasets.

Why Data Visualization Matters in Banking

Imagine checking a bank’s financial report filled with rows of numbers. It’s overwhelming. Now, imagine the same data presented as easy-to-read charts and graphs. Suddenly, the trends are clear, and insights jump off the page. That’s the power of data visualization.

Banks and other financial institutions use data visualization to transform terabytes of data into decisions on customer behavior, regularities involving fraud and optimizing their processes. Another report by Deloitte revealed that 80% of the banking executives feel that data analytics, and visualization are essential for sustaining competitive advantage. 

Tools to Simplify Data Visualization in Banking

Tableau

Known for its powerful dashboarding features, Tableau allows banks to create interactive visuals that make it easy to spot trends and patterns across vast data sets.

Power BI

A Microsoft offering, Power BI integrates seamlessly with existing Microsoft tools and offers in-depth analytics and visualization solutions.

Qlik Sense 

Qlik Sense is ideal for those looking to drill deep into their data. Its associative model makes it easy to explore connections within your data, revealing insights that might not be immediately visible.

For more insights on this topic, you can explore S-PRO’s work in data visualization and data warehousing for the banking sector.

Types of Visualizations

Dashboards

A good dashboard consolidates various pieces of information into a single view. Keep track of KPIs in real-time, identify trends, and respond to any deviations. For instance, a risk management dashboard may allow banks to evaluate credit risks effectively as well as identify cases of fraud.

Heat Maps

A popular choice in fraud detection and customer analytics, heat maps can help banks identify problem areas or highlight popular consumer products. 

Real-Time Analytics

Real-time data visualization offers a dynamic map of data that is critical in real-time decision-making, particularly when implementing trades and transactions particularly to the banking sector.

Predictive Analytics

If data visualization is integrated with predictive analytics, then banks can forecast the future events based on the past trends. For example, when a customer is likely to fail in repaying a loan by analyzing their past behaviors.

Ernst & Young’s 2024 report highlights that 78% of financial institutions that use predictive analytics in their decision-making process have seen improved risk management outcomes.

Want to learn how data visualization can streamline operations in your exact case? Tak to S-PRO, the Swiss-based team focusing on fintech development and data visualization.

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