Optimizing Analytics Deployment in Banking - Building Strategic Capabilities

Abstract

Data analytics capability is the holistic approach towards capturing, processing and analyzing the various dimensions of data. Being the new frontier of innovation in banking space, analytics aids banks in producing data-driven financial insights. Every time a customer transact, banks can generate insights on each of the transactions. Leveraging data to create value from deploying analytics is the potential challenge for banks and hence building strong analytics capabilities has become imperative for banks. At the global level, leaders and agencies are emphasising on practices that promote sustainable development goals and banks are therefore focusing on sustainable initiatives. The present research aims at investigating analytics capabilities and challenges faced by banks in building these capabilities. Literature on analytics capabilities is drawn by researcher by using key-word strategy. A structured questionnaire was built to collect responses from bank staffs and data was further analysed by using SPSS (Statistical Package for Social Sciences). Researchers have employed TOE model (Technology-Organization-Environment) to gain insights on adoption of analytics and factors influencing for building capabilities in banking. The findings indicated that technical know-how of handling analytics and investments on analytics deployment are foundational requirements to build analytics capability in banks. Data integration and security and compliance are found to be quite challenging for banks while developing analytics capabilities. comThe research concludes with suitable measures to be adopted by banks for smooth deployment of analytics initiatives.

Keywords: Analytics capabilities, Banking analytics, Data analytics, Data integration, Sustainable banking.

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