Representing data using graphics like charts, animation and infographics are regarded as data visualisation. Visual displays and representing information in this manner help communicate complex data relationships and data-driven insights in a form that makes it simple to understand and determine a structured plan. The primary objective of data visualisation is to assist in recognising patterns and trends from large data sets.
There is a significant volume of data available today, and to generate any benefit from such considerable data, real-time analytics has become critical for all industries, including finance, to gain a competitive edge. The finance industry is experiencing a significant digital transformation and growing pressure to innovate. To achieve this digital transformation is delivered in various ways, and by leveraging data visualisation, the finance industry can utilise benefits like:
A more comprehensive view into customers’ behaviour and needs
Timely financial intelligence to make informed decisions
Enhanced client reports
Innovative fraud detection
Detailed view of risks across the entire business
Some data visualisation tools in the finance industry include:
Risk reporting and analytics – integrating a range of data sources into a singular source can be challenging. This is the case with banks when reporting risks and performance figures. The main challenge is generating reports that highlight the risk areas applicable to the industry, like market credit, operation risk and so on. Data visualisation is the ideal choice in these cases since data can be consolidated in real-time from multiple sources to create reports that can provide visual analysis. Data analytics can also enable quality data checks across sources to generate error-free reports.
-Client reporting and CRM – client relationship management systems and clients’ reports go together for the finance industry. CRMs provide and help improve relationships with customers. Client reports give finance businesses a complete overview of the customer, risk analysis and other things. Integrating big data and data analytics in real-time provides visual reports with clear information required to make informed decisions and support examining client spending patterns and other variables.
Managing liquidity – finance companies must manage liquidity effectively and have real-time access to all liquidity positions such as currency, locations and relevant products. It’s critical to compare financial figures against standard ratios on an ongoing real-time basis.
Data visualisations make comparisons simpler by providing clear visual reports and risk analysis. Integrating data receipts from other sources provide detailed information to predict and analyse liquidity.
Customer analysis – determining customer needs and behaviour is a critical part of the finance industry and helps businesses create new products and services to meet customer requirements. By empowering finance businesses to interact with their customers, data visualisation technology can provide them with relevant and modern information to offer financial products created to customer needs.
Integrating with social media – social media is a creative way for finance businesses to market products and improve their relationship with customers. This provides big data which can be integrated with CRM applications. Data visualisation tools can connect all data sources and provide data analytics is very important for these companies.
Enhanced identification – using data visualisation, the visual results can be produced for any data without managing filters and sorting lots of details. A range of graphs and charts can be generated instantly to highlight specific details.
Collaborating and sharing data – The reports produced can be shared with multiple teams, simplifying data sharing within a finance business. Teams can collaborate and work together, whether it’s in the exact location or not.
Detecting trends and anomalies in data – One of the main concerns for a finance company is determining fraud. Reports created with data visuals can help detect patterns that may be overlooked because of the sheer amount of data. These reports can help eliminate the potential for financial fraud. Many financial institutions have separate dashboards for fraud detection and risk management.
In conclusion, data visualisation is a powerful tool and can significantly support the finance industry. By applying data visualisation services, consultants with experience within the finance industry can create a unique and competitive edge for their customers.