Risk Analytics Essential For Holistic Digital Transformation

Risk Management Digital Transformation

Digital transformation initiatives have been sweeping through the financial services space, but as banks and credit unions have explored the movement, many are finding their old ways of leveraging technology aren’t up to the task.

A Forbes report summed up the situation simply by explaining that many organizations embarking on digital transformation projects invest in isolated technologies and then give different departments control of data pertaining to various systems and solutions.

The result is a siloed operational climate in which the benefits of modern digital solutions don’t extend across user group – something that becomes incredibly problematic as organizations attempt to transform how they operate.

The problem of siloed transformation
BizTech Magazine reported that most financial services firms go into digital transformation to improve the customer experience, but they often approach it as a technology project. Instead, it’s vital to think about it as a business strategy that is backed by technology.

“Most financial services firms go into digital transformation to improve the customer experience.”

When organizations invest in isolated IT solutions used by varied departments, they may give individual workers some tools to meet customer needs more effectively, but they aren’t creating the kind of operational infrastructure that is truly needed to continually adapt around customer demands. The result is a lack of operational flexibility and responsiveness that holds banks and credit unions back.

Modernized, modular risk management tools can overcome these problems through a combination of user-friendly interfaces and flexible backend configurations that make it easier for banks and credit unions to build analytics capabilities into a wide range of processes. As a result, risk analytics software can function as a key digital enabler that fuels business flexibility.

Using analytics to drive transformation
Analytics, as a broad technological concept, isn’t necessarily going to solve a bank’s flexibility problems. Just giving users access to better data is useful, but platforms must also get that information to the right people at the right time.

It isn’t helpful to have better credit application processing software backed by analytics if your credit decision engine still uses legacy models that don’t let users leverage the alternative data sources used by the application processing system. A holistic approach to risk analytics brings relevant data to every stage of the process, transforming the employee experience in order to create strong customer journeys.

Risk analytics platforms designed to drive speed, efficiency and data-driven decision-making across functional teams can be a catalyst for digital transformation. Few decisions can be made with a deep analysis of data, but banks and credit unions are facing immense pressure to bring a wider range of data types and formats into their processes. This is necessary to keep up with fintech disrupters who are not only reaching new markets, but also influencing customer expectations in many established segments.

GDS Link is driving fintech innovation in the form of risk analytics technologies that are modular and accessible enough for small and mid-sized banks and credit unions, helping them keep pace with the startup alternative lenders that face fewer regulations and the established banks that can afford to build custom platforms.