We’re witnessing the creative destruction of financial services, rearranging itself around the consumer. Who does this in the most relevant, exciting way using data and digital, wins! – Arvind Sankaran, eminent FinTech advisor
Over the last few years, there has been a significant growth in the use of cutting-edge data analytics tools in the banking sector, and this trend shows no signs of abating – according to a study, the global market for financial analytics software valued at 6.7 billion USD in 2020 is likely to record a Compound Annual Growth Rate (CAGR) of over 13% the next seven years, reaching a size of over 15.7 billion USD, by 2027.
Various factors are driving this stupendous growth – as data volumes multiply with each passing day and personalization becomes the order of the day, banking organizations across the world are increasingly depending on robust data analytics platforms to carry out their operations in a safe, efficient and cost-effective manner.
One of the most widely used data analytics systems in the banking sector is Salesforce Einstein. This novel suite of analytics tools comes with a wide variety of AI-powered capabilities that enable banks to leverage the immense potential of their business data to achieve rapid growth. To know more about this analytics powerhouse, I spoke to Dilip Singh, a Salesforce veteran at Solunus Inc., one of the fastest-growing dedicated Salesforce partners. Here is what the expert has to say.
What makes Salesforce Einstein the preferred choice of the banking sector?
Dilip: Ease of usage. Salesforce Einstein is an incredibly powerful tool yet is extremely simple to use. It is designed with the non-technical business user in mind. Users of this innovative data analytics solution need no programming skills to use it effectively. Banking professionals can utilize Salesforce Einstein to perform data analyses and build business models of any complexity with just a few clicks.
Many bankers often complain their data analytics tools are not fully tailored to meet their unique business needs. How does Salesforce Einstein fare in terms of customizability?
Dilip: The developers of Salesforce Einstein fully understand that no two banks have the same data needs. The product is highly customizable and can be perfectly tailored to meet the analytics needs of any type of banking institution, irrespective of its size and scale of operations -- from small lenders to global behemoths with varied operations across the investment, commercial and retail banking spheres, many financial organizations have benefited from the capabilities of Salesforce’s data analytics system.
It’s often said identifying the right borrowers is critical for business success in the banking sector. How can Salesforce Einstein help bankers identify people that they can lend?
Dilip: Banks must consider various aspects before they can loan their money to customers; they should check their credit history, identify their financial needs, evaluate their ability to repay and perform various other due diligence related tasks. With growing business volumes, it can be hard to analyze all data pertaining to a potential customer quickly. This is where Salesforce Einstein can be of great help.
Dilip: Bankers can use its AI-powered abilities to profile their customers into various segments based on the risk of doing business with them and other parameters, in no time, and this will enable them to decide whom to lend and how much, without delays.
In recent years, most banks are providing various financial services such as insurance and wealth management. How can banks use Salesforce Einstein to identify potential sales opportunities pertaining to these services?
Dilip: Good question. Salesforce’s data analytics solution provides a 360-degree view of the interactions with each customer across various units of a bank or its subsidiaries. For instance, a customer has availed a mortgage from the bank. This information can be instantly made known to the sales rep of the bank’s insurance subsidiary, who can offer the customer an appropriate policy to cover the mortgage, thereby expanding the relationship.
Today, most customers seek high levels of engagement with their banks. How can Salesforce Einstein help banks provide good services to their customers and delight them?
Dilip: Personalization has become the norm in the business world, especially after the outbreak of the COVID-19 pandemic, and banks are using Salesforce Einstein in various ways to engage their customers well. Most Salesforce-using banks utilize Einstein’s AI capabilities to power highly interactive chatbots. These chatbots mimic human agents in their ability to hold contextualized conversations with customers, helping them find the information they need, thereby delighting them. AI-powered bots are also helping banks perform various back-office operations providing faster resolution to customer requests.
Back-office operations reminds me of a key challenge – most bankers feel their back-office operations cost them a lot and deliver low ROI. How does Salesforce Einstein help?
Dilip: Most banking companies spent more than 80% of their budgets on 20% of their back-office work. This resulted in an enormous drain on their precious financial resources. Many lenders are now using Salesforce’s data analytics tool to automate their back-office operations such as analyses of Know Your Customer (KYC) details, saving considerable sums of money.
The banking industry is one of the most heavily regulated sectors of the economy. How does Salesforce Einstein help banks ensure safety and compliance with rules?
Dilip: Salesforce Einstein can help banks detect fraud and help them identify illegal activities such as money laundering. The data analytics tool helps banks to connect various pieces of information provided by the customer to get the big picture and ensure it is accurate. For instance, one of our customers uses Einstein to cross-check customer information; the mortgage provider uses the application to match details of properties submitted by the customer with government records of ownership. Likewise, banks can analyze details of transactions to identify suspicious behavior and raise a red flag, if necessary.
Where do you see Salesforce Einstein in the years to come?
Dilip: That’s a tough question (laughs). Technology is evolving at a very rapid pace and imagining what Salesforce Einstein can do in the future is difficult. But we can be sure of one thing – banks’ data needs are constantly evolving and so will Salesforce Einstein’s capabilities. The developers of this novel product have always laid strong emphasis on usability and meeting the challenges of tomorrow. The integration of Tableau with Salesforce is a fine example to prove this. Change is the only constant in the world of business, and we can confidently say Salesforce too will adapt its products, including Einstein, to tackle the challenges in the coming years.
This is what Dilip had to say. Hope you find this post interesting.
What Can BFSI Firms Expect by Partnering with Solunus?
45% Faster Stakeholder Collaboration
35% Growth in Sales Productivity
190% ROI on Salesforce
40% Reduction in Decision-making Time
Solunus is a dedicated Salesforce partner organization, headquartered in Dallas, Texas. Our unrelenting focus on comprehending the unique needs of our clients coupled with our unrivaled expertise of the Salesforce platform enables us to deliver the perfect solutions that create the best value.