Business intelligence in modern banking

Abstract

Business intelligence represents the process of collecting all the available and important external data and their transformation into useful ones that help each bank management with making business decisions. In modern banking, the system of business intelligence enables multimedia analyze, on-line analytic data processing as wel as Data Mining which can be used by bank man-agers in order to get and learn important trends that are “hidden” in big data bases. Apart the others, integral parts of business intelligence are Data Warehouse, executive and informational systems, on-line analityc data processing and Balanced Scorecard (BSC) implementation.

Among the most important goals of business intelligence is identifcation and anticipation of real favorites and bad circumstances in business bank environment. Quality architecture of the environment of bank systems for support should include the trinty: Data Warehouse, OLAP and Data Mining. Business intelligence values should be observed from the point of modern understanding of managing and making decisions. Business banks which are able to manage their data resources, information and knowledge are more successful than their competitors.

Business banks have a lot of information resources, but real challenge is to know to collect the information in a defnite time period, from the appropriate category of clients. The main idea of CRM is not any more going in for products and services but for their clients. Today it has become possible by development of data bases where saved data about specifc clients are put, as well as software that enables optimal usage of those data.

Studying the clients represents the base of CRM and it is the information of bank client inte-raction that results in the possibility for making stabile profitable relations with clients. The concept of electric business intelligence as its main support has a signifcant importance for developing of CRM in business banking. Therefore, business banks, which are oriented to traditional managing way, become uncompetitive in a very complex capital of bank market.