How predictive analytics can improve effitiancy of your finance team
Predictive analytics finds immense business value in a range of industry verticals. Finance comes under one of them. Experts suggest that finance is about to emerge as one of the biggest markets for predictive analytics. The need for accurate risk management and other financial decisions have already made analytics essential in the finance sector.
Financial Analytics is going to become an inherent part of software applications that are used in the industry. With that upgrade, predictive analytics will help finance teams in multiple processes with rich actionable insights.
Here, in this post, you will find some applications of predictive analytics specifically for the financial services and solutions domain.
The threat of fraud is one of the biggest concerns of financial leaders. Both internal and external financial fraud can cause a company millions in many cases. This is why finance teams need reliable technologies to detect potential threats of fraud in advance and take action before things get serious. The advanced analytics provides the potential indicators that help finance teams to predict any potential fraud chances. This identification presents a great level of security to the companies.
Enhancing supply chain
The supply chain is one of the most important areas of a business where cost-efficiency is a necessity. The finance teams need to work day and night in order to reduce the cost of a fleet and asset tracking. Any inefficiency can turn into higher product costs and lower customer experience. However, predictive analytics allows a finance team to combine technicalities with creativity and create the most cost-effective model for the supply chain.
The prediction of equipment failure, bad weather, potential fraud and other factors give all the right information to the finance team. And that leads to identifying all aspects that can help improve the supply chain.
Assess loss making factors
Predictive analytics offers the powerful capacity to find the right reasons for a loss (that too, in real time) and optimize resources and strategies to alleviate the same. The finance team can assess millions of data points in diverse formats and gain indicators that show why a company faces a loss.
A clear model of the loss making factors allows the finance team to predict the future potential loss. As a result, the team can help the company make the right decisions and stop those losses from occurring in the first place.
Revenue sales forecasting
Forecasting revenue is probably the most important responsibility that a finance team handles. They need to monitor and understand the data related to sales, marketing, operation and many others in order to find out the potential revenue. However, the accuracy becomes the key factor in this department. The availability of predictive analytics from all directions allows the team to actually provide an accurate set of data predicting the potential revenue.
The predictive analytics works with a history of data related to the customer behavior, past sales, marketing and other aspects and helps in finding the potential revenue in sales.
Growing exponentially, predictive analytics is going to present highly exciting opportunities for finance teams in the coming future. Get ready to grab these opportunities in advance.
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