Business intelligence and analytics are becoming ever-more important for banks and credit unions. In addition to insight into financial position and information-flow support, improved business intelligence is a critical factor in creating a competitive advantage.
However, while analysis of the data-rich environments housed within market-leading transaction processing systems has the potential to be transformational, achieving these benefits isn't always easy.
Here we look at five key challenges of analysing information from Temenos T24.
1. Choosing the Right Application
At its most basic, a data warehousing application aims to consolidate financial data into a single data archive.
To execute this process, data extracts are created, financial information is read and processed, and transformations take place so that detailed, high-value analysis can be performed.
If extracts fail to include all the relevant data, or errors occur in
What's more, the cost of large-scale, long-running data warehousing projects, with bloated or inefficient requirements scoping, along with the capital investment in hardware and software infrastructure and the specialised skills required, can also prove prohibitive.
To integrate core banking system data effectively, whilst avoiding large capital investment and limited return on investment, choosing a reliable, high-value BI application is crucial.
2. Inability to Identify Measurable Results
At its core, the purpose of a BI system is to gain a better appreciation of the current banking environment to generate a competitive advantage.
Temenos T24 is a market-leading solution, but it can be quite complex for finance users to extract the key data in a way that can be reconstructed to show the total financial position of the bank.
It is, of course, possible to get lists of loans and deposits, but what's really needed to satisfy the finance department’s requirements is a comprehensive data model built for financial reporting. Along with the ability to report at the right point in time, and on a repeatable basis.
Analytical data from Temenos T24 is only worthwhile if the reporting application has sufficient analytical resources in place to afford a better awareness of the banking environment. To ensure this is the case, choosing a highly analytical application is pivotal.
3. Lack of Customisation
Even in the systematic and regimented financial industry, no two institutions are the same. Every bank and credit union is run uniquely and relies on different information to function effectively.
Having the correct information readily available helps simplify and speed up banking processes and also aids the identification of key differentiators in the market.
While it's true that transaction processing systems provide invaluable financial services, they often lack customisable features that banks and credit unions desire, with Regulatory Reporting often being a key area where they fall short.
Integrating Temenos T24 with a configurable analytical application enables financial institutions to easily customise data layout and produce detailed reports.
4. Failure to Notice Changes
Financial institutions can easily be lulled into ‘flying blind’ if deprived of frequent, timely and accurate reporting.
Without regular, accurate insight into their financial environment, banks and credit unions can fail to notice subtle changes in their own results, or in their approach to the market.
And, as a result, their ability to take advantage of opportunities may suffer, or worse, under-performance trends in the business may go unnoticed until it’s too late.
Integrating Temenos T24 with an automated, report-focused application provides banks and credit unions with a comprehensive snapshot of the banking environment, enabling them to achieve financial control.
5. Ignoring Business Process Re-Engineering
Business process re-engineering (BPR) is the practice of rethinking and redesigning the way work is performed to better support an organisation's mission and reduce costs.
The financial sector has a reputation for an inability to move quickly. Banks and credit unions often struggle to replace outdated practices and processes, despite the opportunities that modern-day technology can provide.
Integrating Temenos T24 with an advanced analytics application can be most effective only if financial institutions are willing to alter their way of working to maximise the benefits of the platform. In the long term, overcoming this hurdle will be essential if financial institutions are to compete.
Banking BI and Analytics Application
Performing a Temenos T24 Business Intelligence integration can present a number of key challenges for banks and credit unions. But tackling these obstacles becomes far easier when you choose the right reporting application.
To maximise banking performance, banks and credit unions should invest in a software solution that prioritises reporting, supports the flow of information, and improves business intelligence.
To discover how BankBI can help your financial institution overcome integration difficulties on a cost-effective subscription basis, contact us today for a free consultation.