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.
Leverage Predictive Sales Analytics
Accurate forecasting is what drives business planning. Conventional methods of forecasting –based on human judgement– led to large variances. Using predictive sales analytics, businesses can improve forecasting, facilitate alignment of sales and marketing, improve conversions with predictive lead scoring etc.
Improve Visibility into Channel Partner Performance Metrics
Most financial businesses rely on a network of channel partners to sell their products. This makes it extremely challenging to have a high-level view into your channel performance metrics. By leveraging Partner Relationship Management (PRM) solutions, businesses can track, correlate, and stitch together different aspects of their channel partners’ performance.
Make Comprehensive Risk Prediction
To predict industry and region-wise delinquency, businesses can map delinquency charts based on historical data. These charts help predict risk and provide businesses with comprehensive foresight into defaulting contracts or industries susceptible to default.
By following the above mentioned tips, businesses stand at improving sales, reducing delinquency, and mitigating risks.
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