For business loan providers and working capital financiers, there’s an ever-present risk of delinquency and losses. But with the need to thrive and grow their customer base, businesses can leverage technology in order to take advantage of opportunities. By improving their business intelligence process, financial companies can improve efficiency, reduce risk, and predict delinquency.
Here are 5 ways financial companies can boost sales and mitigate losses with risk analytics:
Improve Visibility into Sales and Pipeline Across Channels
With an increasing customer base comes the responsibility for businesses to improve visibility into their sales across different channels. The vast amount of data collected can be cleansed to remove null entries by using an ETL or a data blending tool. A data visualization solution like Tableau can then be used to create dashboards. If done right, businesses can track profitability, breakeven, and even future cash flow.
Though, this should best be left to your analytics team.
Set Adequate Risk Profiling Parameters
For financial businesses, it is crucial to determine proper investment asset allocation. In order to increase risk tolerance, businesses should analyze risk profiles as per personas, credit history, and other parameters. Based on this, risk probability and risk impact can be plotted to determine asset allocation for different profiles/portfolios.