Data analysis in the financial sector – how can Power BI help?

Today, the financial sector is one of the world's most competitive and rapidly growing industries. To meet the challenges, financial institutions need to use various tools that enable them to make fast and accurate data-driven business decisions. And when it comes to data, that's where Power BI can't be missed.

Power BI: Business Intelligence in the finance sector

The amount of data we deal with is growing exponentially. In finance, we notice this all the more, which is why using business intelligence solutions is crucial for effectively managing big data, and the data analyst role is becoming increasingly important.

Use of Power BI to support the financial sector in data analytics

Power BI: Business Intelligence in the finance sector

The amount of data we deal with is growing exponentially. In the finance and banking industry, we notice t all the more, which is why the use of Business Intelligence solutions is crucial for the effective management of big data, and the role of the data analyst is becoming increasingly important.

What is Business Intelligence?

Business Intelligence is a set of tools and techniques for analysing and converting data into information that helps drive business decisions. Business Intelligence in banking and finance uses several methods, including but not limited to the following:

  • business analysis
  • financial analysis
  • market analysis,
  • customer analysis.

Business Intelligence allows data to be visualised in an accessible and understandable way so users can make fact-based decisions quickly and effectively.

Business Intelligence solutions can use various tools (such as Power BI) and solutions, such as reporting, data warehousing, business analytics, data mining, or dashboard building.

Examples of Business Intelligence applications in the financial sector include:

  • profitability analysis of products and services,
  • investment risk analysis,
  • analysis of market trends,
  • analysis of marketing campaign effectiveness,
  • analysis of sales and financial performance.

data analytics Power BI big data

Financial data analysis – what is worth knowing about it?

Today, data analysis has become an essential skill in the financial services industry. It makes it easy to understand customers’ needs and preferences, understand their intentions, and obtain information about your business.

Data analysis is also very useful for planning and making business decisions. In the case of the finance sector and the dynamically changing market situation, this is of vital importance. Performing ongoing analysis, as well as predictive analytics, offers many opportunities, ensuring stable growth and increasing competitiveness.

Why is Microsoft Power BI the best choice for data analysis in the financial sector?

Nowadays, banks, insurers, investment funds, and other financial institutions collect and store large amounts of data. These relate to transactions, customers, markets, and other aspects of the business.

However, simply having the data is not enough. You need the tools to analyse it, allowing you to understand market trends, detect anomalies and make the right decisions. Power BI is applicable in this context.

Microsoft Power BI is a Business Intelligence-class data visualisation tool that allows for the quick and easy creation of interactive reports and dashboards. For the financial sector, Power BI offers a range of advanced functionality, such as integration with various data sources that include databases, spreadsheets, CSV files, and even cloud platforms such as Microsoft Azure.

Power BI provides users flexibility, ease of use, and real-time data visualisation. The drag-and-drop wizard and natural language questioning capabilities, in turn, make it easy for even those with little technical skill to analyse data.

big data - analyse data with Power BI

What are the benefits of implementing Power BI in the financial sector?

The financial sector is changing extremely rapidly. Financial companies must adapt their strategies and operating methods as technology evolves to meet market demands. Implementing Power BI in the financial industry is one strategy whose benefits outweigh the costs. Amongst these, the key benefits are:

1. The speed of data analysis

With Power BI, financial companies can analyse critical data quickly and accurately and easily compare financial performance and identify trends, ultimately helping to make sound business decisions.

2. Improved efficiency

Implementing Microsoft Power BI can accelerate business processes and help improve efficiency. For example, with data visualisations, financial companies can more easily identify areas for improvement and consciously market products in line with customer interest.

3. Real-time data availability

Power BI provides real-time access to data, allowing financial syndicates to monitor their financial performance in real-time and make faster business decisions – regardless of when or where they work.

4. Support in risk management

Risk management in the finance industry plays a significant role. With constant insight into data and the ability to produce interactive reports, factors negatively affecting the profitability of projects can be easily identified and eliminated.

5. Increased competitiveness

Implementing Microsoft Power BI can help financial companies improve their position in the market. By making faster and more accurate business decisions, these companies can better respond to changing market demands and compete with their counterparts.

financial data for revenue estimation

What are some examples of using Power BI in the financial sector?

Implementing Power BI in companies operating in the financial sector can improve many areas. First and foremost, it has a positive impact on the following:

Financial performance analysis: Power BI can help analyse financial performance by presenting data in interactive charts and reports. This makes it easier to discover trends, pinpoint problems and identify areas for improvement.

Portfolio management: Microsoft Power BI significantly improves portfolio management by presenting information on portfolio value, asset distribution, and individual investment performance.

Risk analysis: In addition, Power BI can help with risk analysis by presenting information on credit risk, market risk, and other risks. This makes it easier to understand what factors contribute to risk and how it can be reduced.

Budgeting and planning: Microsoft’s Power BI data analytics system can also improve budgeting and planning by presenting information on expenses, revenues, and other factors that affect the budget. This makes it easier to set targets and plans for the future.

Reporting: Reporting with Power BI also becomes more efficient, as by automatically generating reports based on data from various sources, it becomes easier to monitor performance and inform stakeholders of progress and achievements.

Why is data analytics in the financial sector so important?

Data is critical in many areas of life, including the financial sector. Data analysis in this industry, in particular, is fundamental because it enables accurate and effective risk management.

Banks and other financial institutions must make many decisions regarding investments, loans, and other financial products. Data analysis allows them to assess risk accurately and make informed decisions that minimise the risk of capital loss and increase the chances of profit.

Secondly, data analytics enables a better understanding of customers. Banks and financial institutions collect large amounts of customer data, including information about their transactions, preferences, and behaviour. Their analysis allows them to understand their customers’ needs and expectations better and tailor their offerings to their needs.

Thirdly, analysis of financial data enables better planning and forecasting. Market trends can be accurately estimated through analytics, and changes in the economy and customer behaviour can be anticipated.

Fourthly, data analytics enables more efficient operations. Financial institutions can identify processes that need to be optimised or streamlined. This can increase efficiency and reduce costs.

If you want to implement Power BI in a company from the financial sector, we invite you to talk to us! As a Microsoft Gold Partner, we have the relevant consulting expertise and a team of experienced consultants to process the entire project professionally.