Industry news

Business intelligence to be increasingly invested in by banks

Banks from Europe, the Middle East, North America and Asia/Pacific are set to spend nearly £5 billion on business intelligence (BI) software in 2012, compared with just £2.8 billion in 2006.

Research from market analyst Datamonitor indicated that this growth will be fostered by the increasing regulatory and compliance pressures placed on financial institutions, a competitive business environment recovering from the credit crunch, and the need for strong management.

The report ndicated that growth in the budget of BI software would enable banks to fully utilise the increasing volumes of data being stored across several disparate sources, to make real-time business decisions.

According to website CRM Daily, Jaroslaw Knapik, financial services analyst at Datamonitor, said: "BI functionality is growing in demand as it tracks and monitors operational risk, and provides a more sophisticated and consolidated picture of risk exposure across all divisions."

Datamonitor said that retail banks should integrate their BI solutions with risk modeling analytics and other technologies, such as business process management, to ensure they have an effective compliance solution in place.