AU2020101902A4 - Framework for business intelligence adoption in banks for performance enhancement - Google Patents

Abstract

FRAMEWORK FOR BUSINESS INTELLIGENCE ADOPTION IN BANKS FOR PERFORMANCE ENHANCEMENT ABSTRACT Business intelligence is transforming the banking sector. And today's financial institutions face increasing competition, better customer satisfaction, enhanced decision-making, faster and more accurate reporting, amplified revenues and improved competitive advantage in changing customer demands, and the need for strict control and risk management in a highly dynamic market. The main aim of the study is to improve performance in the adoption of business intelligence tools that enable decision-making to achieve strategies in the banking sector. This invention proposed the Unified Model Drawing from DOI (Diffusion of Development Theory), TOE (Technology-Organization-Environment Framework), and INT (Institutional Theory) as underpinning theories for assessing variables that affect BI Systems' adoption to improve efficiency in the banking sector. 1|Page FRAMEWORK FOR BUSINESS INTELLIGENCE ADOPTION IN BANKS FOR PERFORMANCE ENHANCEMENT Drawings Figure 1: Integrated foundation model 1|Page

Description

FRAMEWORK FOR BUSINESS INTELLIGENCE ADOPTION IN BANKS FOR PERFORMANCE ENHANCEMENT

Drawings

Figure 1: Integrated foundation model

1|Page

FRAMEWORK FOR BUSINESS INTELLIGENCE ADOPTION IN BANKS FOR PERFORMANCE ENHANCEMENT

Description

Field of the Invention

This invention relates to recommendations, integrating the theories and tools of business intelligence systems. Thereby, it boosts the efficiency in the financial sector employing fast and accurate decision making, and the need for risk management can be adopted. Hence integration helps in enhancing the performance.

Background of the invention

In a highly competitive market, changing consumer expectations, intense competition, and the need for tight regulation and the need for risk management are some of the essential features of the business environment in which modem banks work. Better management and sound decision making make a difference between the successful and the bad on the market with these characteristics. Business intelligence tools for banks must provide decision-makers from all business areas of the banks with the ability to handle and leverage knowledge resources, making it easier to solve challenges and take timely and high-quality decisions.

In a rapidly evolving and volatile financial environment, banking institutions need to depend more on fact-based actionable knowledge, benefit from ever-increasing data assets, and rising risk wherever possible. BI is commonly used for risk management in the banking sector. The banking boss wants to measure the value of their customers. There is a high risk of losing future customers when introducing new consumer credit cards, expanding existing customer credit lines, and allowing the development of fraud detection models to identify and warn potential fraud transactions. Card fraud analysis will predict the number of transactions that will increase rapidly after fraud. Through comparing the estimated average number or amount of daily transactions, an early warning may be issued by the authorization program.

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The Business Intelligence framework will also provide the same data and process features and produce the necessary business knowledge needed for decision-making. Business intelligence tools can be utilized, as a source and a healthy support system, by an organization, to develop ideas for growth in today's competitive market. Business Intelligence tools encompass the software that is particularly proficient in assembling, accumulation, processing, and beneficially presenting business information.

In increasing competition, understanding the requirements of the Consumer is the recipe for success for an organization. Looking at the few decades, the focus of business had been moved from sales maximization to consumer satisfaction. Today's Consumer is a key factor that has a wide range of influence on the success of a business-the limited concentration on consumer limits, the growth prospects, and route for an organization. The magnitude of consideration towards Consumers defines the success of an organization. It is unexpressed that the Consumer is the most critical factor, and thus Customer Delight is the primary aspiration for any organization.

To understand the behavior of consumers, one needs to have information about their expectations and experiences with the organization. This can be done by conducting routine consumer surveys, marketing research, and using other Consumer that enables the consumers to share their opinions, expectations, need, suggestions, recommendations, and experiences so far. All the data collected through feedback or surveys are not always pertinent. The information needs to be examined.

Business Intelligence does this scanning by collecting the data where it is not available, processing the available data, and providing only relevant information to the authority and helps in decision making. The decisions made by the authority are critical. They affect not only the internal organization structure but also the expectations of stakeholders and their consumers. Thus it is the competence of Business Intelligence tools that could provide the relevant information to the authorities for efficient decision making, and it is the efficiency of the managerial decision that could enhance Customer Delight.

After the introduction of LPG norms, the competition has increased manifold. India being an open economy, could escape from the global meltdown due to the maintenance of risk aversion policies by Reserve Bank of India (RBI). There is a great challenge before the preachers who advocate

21Page that Business Intelligence can be applied to produce information that could be valuable for developing practices that are not only conducive for the smooth working of the banking system but are also Consumer-friendly.

Objects of the Invention

The main objective is to integrate the business intelligence tools with the underpinning theories of adoption to enhance better decision making and performance. And also discovers opportunities and strategize banking operations.

Another yield is to improve the control of risk and Customer Retention.

Summary of the Invention

Business Intelligence software tools help form a plan that is right and can produce quick, reliable results within a given timeframe. It ensures that resources are used where necessary so that that returns can be maximized. Fewer advantages of using BI in banks include Strategic banking activities, Evaluate product/service/branch expansions, Provide insights into possible mergers and acquisitions, Conduct consumer analysis, Facilitate needs-specific financial services, and so on.

In the cycle of risk management, the banking system is becoming more sophisticated and integrated; the risk factors are becoming much more diverse. Fraud is mainly the number one concern that banks need to reduce. The trick to finding out about fraud is a suspicious activity when checking the account and using the credit card. Tracking employee conduct for fraudulent sales, deposits, expenditures, and lending will reduce the possibility of legal action and speculation. Scanning past fees and repayment activities can contribute to an understanding of general patterns, such as economic slowdown.

Marketing can be enhanced based on competitiveness and demographic details on their customers' families, and banks now know what good prospects look like and would be better able to market for them. Banks can also create more successful cross-selling and up-selling campaigns by

31 P a g e observing the actions of consumers to make a strategic move. The payoff is enormous, as it's five times cheaper to sell to existing customers to get a new one, researchers say.

Customer retention can be enhanced based on knowledge on the productivity of consumers; banks can come up with a more cost-effective concept of engagement that attracts revenue from losing customers. For example, a customer making cash withdrawals from the bank to pay bills could be persuaded to use online banking to pay bills. It can be seen that online banking is cheaper than teller transactions. Being able to understand customer habits, expectations, preferences, and behaviors, banks will understand how to customize their products and services in ways that meet customer needs, solve problems and promote customer retention and loyalty.

Operational Efficiencies in Banks can not afford only to add workers to raise sales. Banks will continuously explore ways to make their current employees more effective in increasing operating efficiencies. Business intelligence tools for banks may be used to evaluate operating processes and better optimize internal capital and skills.

Products and Services are the central theme of banks and can be personalized using BI software that monitors customer, product, and branch productivity to enhance efficiency. The bank will alter pricing or business operations to boost profitability and to monitor the improvement of services. BI methods are used to define and predictive analytics as well as to assess consumer behavior in the purchasing of a product when and by which process. Using all this new data and knowledge, banks will introduce innovative ideas and develop products and services to meet consumer needs and increase their market competitiveness.

Developing new investment strategies in BI tools can also monitor recent out-of-bank technologies for alternative investment strategies to be used. Information can be extracted from social media, and investors can obtain a precise understanding of their mentalities and build trading signals. Whole new areas of innovation in innovative approaches are emerging from analytics and business intelligence applications. Detailed Description of the Invention

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The figure explains the functionalities of business intelligence tools with the underpinning theories. Each theory recommends different types of features, which enhances the tools of BI so that the queries of prior studies can be overcome. The implementation of a new idea, behavior, or product, which could also be termed innovation, does not coincide in the social system. It is, instead, a mechanism in which certain people are more likely to embrace creativity than others. The latest findings indicate that people who embrace innovation early have different features than people who follow innovation later on. When promoting/introducing innovation to the target population, it is essential to understand the behavior of the target population that will help in the adoption of innovation. There are five defined adoptive categories; they are innovators, early adopters, early minority, late minority, laggards. The bulk of the general population falls into the middle groups, and it is essential to consider the features of the target group. When it comes to promoting/introducing innovation, different strategies are used to appeal to different categories of adopters. Five key factors affect the acceptance of innovation, which are explained below. • Relative Advantage is an innovation that is seen to be better than the idea, program, or product it replaces, and that gives the functionality a better result. • Compatibility is an innovation that is consistent with the values, experiences, and needs of potential adopters. • Complexity is an invention that is difficult to recognize and use. • Taxability is the degree to which invention may be checked or evaluated before a decision is made. • Observability is the extent to which innovation produces tangible results. Technology-organization-environment describes factors that influence the adoption of technology and its characteristics. TOE defines the method of shaping the technologies from which the corporation adopts and introduces developments that are affected by the technical background, the operational context, and the environmental context. The technical background encompasses both internal and external innovations that are important to the organization. Technologies can require both equipment and processes. The organizational background refers to the features of the company's developments and finances, which include the scale of the business, the degree of centralization, the degree of formalization, the administrative

51Page system, human capital, the sum of finite resources, and the linkages between workers. The global context of innovation encompasses the scale and scope of the market, the company's competition, the macro-economic climate, and the regulatory framework focused on innovation. These three functions present "both constraints of influence and opportunities for technological innovation."

Institutional theory suggests that the institutional setting will affect the creation of structured organizational systems, even more under market pressure. Innovative structures that improve technical efficiency in organizations are being legitimized in the environment. Under this case, existing and present organizations will follow a hierarchical structure that does not increase performance.

Business Intelligence consists of a range of business tools and technology such as ETL, Data Warehouse, OLAP, Data Mining, and so on. BI methods are used in corporate decision-making with the primary purpose of improving overall company efficiency in the marketplace. The BI systems were able to review data for decision support in a timely and reliable manner.

ETL Process consists of ETL modules that collect data from internal and external databases, eradicate data errors and redundancies, and provide consistent data for entry and review and loading to the next level of data storage. A significant aspect of this method is data purification, where differences of data schemas and data attributes from different transactional processes are overcome. The data warehouse is a computing platform that stores the necessary data in a server where it is collected and tested to meet decision-making objectives. The separate collection of enterprise data is collected, converted, and transferred from the ETL systems to the data center.

An electronic analysis method is a technological tool that relies on the organization's necessity to build one or more data cubes. Each electronic computational method database provides a limited number of cubes and dimensions. The online analytical method is a multidimensional paradigm that facilitates robust drill-down and roll-up analysis. Data mining techniques are used to evaluate patterns, generalizations, regularities, and laws for data properties. The Unified Base System is

61Page categorized into Individual Variables (IVs), Mediating Variables, Moderating Variables, and ultimately Dependent Variables (DVs).

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Claims (8)

FRAMEWORK FOR BUSINESS INTELLIGENCE ADOPTION IN BANKS FOR PERFORMANCE ENHANCEMENT Claims We Claims that

1. Feed as much data as you want into BI software, it's never going to get overloaded as long as it's good, clean information.

2. Faster reporting in banking helps businesses to view both past and present data in real time. This makes it easier to spot patterns, possible bottlenecks, and set goals based on conventional metrics. No longer waiting for a response for 2 month after you demanded it from the financial department.

3. Business intelligence in banking interacts through a number of networks, reducing the need to generate reports on an individual basis.

4. It also lets businesses calculate large-scale consumer data in numbers never seen before to help increase customer loyalty. Banks can have a deeper understanding of their BI banking clients , helping them to resolve their problems proactively.

5. More accurate reporting - Business intelligence in banking eliminates the need to manually wrangle data by linking directly to main system repositories.

6. It, in effect, would allow them to devise policies and procedures for banks financial, tactical and strategic decisions.

7. Improves the productivity of banks.

8. Computer tools that reduce risk and boost performance will make fast and accurate decisions. And then the satisfaction of the consumer can be preserved.

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FRAMEWORK FOR BUSINESS INTELLIGENCE ADOPTION IN BANKS FOR PERFORMANCE ENHANCEMENT

Drawings 2020101902

DIFFUSION OF INNOVATION TECHNOLOGY-ORGANISATION- INSTITUTIONAL THEORY THEORY ENVIRONMENT FRAMEWORK

BI TOOLS AND TECHNOLOGY

Mediating and Independent and moderating dependent variables variables BI SYSTEM ADOPTION

IMPROVED PERFORMANCE ENHANCEMENT

Figure 1: Integrated foundation model

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