The Universal Appeal – and Value – of Advanced Analytics

Plenty has been written about how advanced analytics can help businesses solve some of their greatest challenges. Bridging the gap between data and insights, advanced analytics can enable faster decision-making so businesses can get to market more quickly. In financial services, this is typically viewed through the lens of underwriting and finance. What’s sometimes lost in translation is how data and analytics (D&A) can be used across multiple functional areas to improve decision-making of all kinds: macro, micro, real-time, cyclical, strategic, tactical and operational.¹ D&A can also expose new issues and opportunities that are not yet identified.
 

The organizational impact of data and analytics

These collective, data-driven, insight-informed decisions can have a significant impact on institutional performance.

For starters, leveraging market, company and third-party data to identify viable development opportunities and effective strategies — including creating more engaging digital experiences — can accelerate growth.

• Advanced analyses of first-party data can help align and optimize growth strategies
• Leveraging trended credit and alternative data for a deeper and clearer understanding of consumers’ credit behaviors can improve targeting and marketing outcomes
• Analyzing digital activity and real-time data to better understand consumer behavior can provide insights to improve customer experiences
• Customized underwriting models that provide an enhanced understanding of risk can expand access to credit and improve portfolio performance
   

Applying enriched insights on customer preferences, financial activities and credit behaviors can help enhance productivity and profitability.

• Recalibrating models to accelerate identification of accounts in pre-delinquency can improve account management
• Refining prioritization and contactability models can improve collections outcomes
   

Using AI to develop sophisticated fraud models or applying predictive and prescriptive analytics to portfolio activity can lead to more proactive approaches to risk management and regulatory compliance.

• Establishing advanced early warning systems that capture fraud at point of origination can improve protection
• Ensuring data accuracy, completeness and traceability can communicate and promote transparency
   

The list goes on, however, not all financial institutions (FIs) have the in-house resources — personnel, technology, etc. — or sufficient access to their data to integrate advanced analytics effectively and reliably. Solution providers offer a range of options, and it’s important to understand what’s out there. When it comes to selection, FIs should consider providers that understand their businesses and can scale to meet their short- and long-term needs. 
 

Increase confidence in decision-making

TransUnion’s advanced analytics solution TruIQ^TM offers predictive models and insights, intelligence tools and customized consulting services to help you address complex challenges and stay ahead of the competition while maintaining regulatory compliance. Featuring data openness and deployment flexibility, TruIQ helps accelerate the analytical lifecycle from data access to actionable insight. For example:

• Analytics Studio provides on-demand access to TransUnion’s rich datasets, along with code recipes and analytics expertise — enabling rapid data exploration and mining, and fast model development and deployment.
• To meet more specific needs, our Innovation Lab convenes a team of dedicated data scientists for a targeted, immersive engagement where customer and TransUnion data are combined with analytics methods to quickly deliver actionable solutions. Use cases range from universe expansion and new product development to advanced fraud models and actionable prescreen solutions.
   

To increase confidence in decision-making and improve business performance across the customer lifecycle, consider integrating advanced analytics throughout your organization. The right provider can help you develop your roadmap — to take you from where you are right now to where you want to be. 

Contact your TransUnion rep to learn more about how TruIQ can help optimize your business. 

¹ What Is Data and Analytics: Everything You Need to Know | Gartner