A major advantage of living in the information era is that businesses now have access to more data than ever before. Banks track a lot of risk metrics and leading indicators to stay ahead of the market and detect any upcoming risks or opportunities. External metrics help a bank understand the market, while internal performance metrics help the bank understand its own vulnerabilities and strengths. There is, however, a third piece of the puzzle – context.

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Adding context to performance data

Banks need to assess their own performance like any other business, but the problem is that banking is a complex domain that contains many different types of services, products, and solutions. A bank does not simply need to measure revenue, its performance can also be evaluated by determining how much maximum potential is realized over time.

This is where peer insights truly shine. The first step of generating peer insights is selecting the banks that are truly peers when it comes to the market is being catered to, the type of investments being made, and the size of the bank. This means that banks not only know how well they’re doing based on revenue, but they also have the data on how other similar banks in similar situations are performing. This helps banks contextualize their performance and understand what they can do better.

Peer insights enable banks to evaluate their financial performance metrics in comparison with others. Modern peer insights solutions have drill-down functionality. Click To Tweet

SOX technology can show how these parts of the process can be made faster. Does technology help people collaborate faster and easier? If the answer is yes, then management can surmise that the same solution will be beneficial for other compliance processes as well.

Enhanced Strategic Intelligence

Peer insights enable banks to evaluate their financial performance metrics in comparison with others. Modern peer insights solutions have drill-down functionality. This means that when a banker looks at the performance of other peer banks on their dashboard, they can click on any bank to see more details about that bank and compare all the available metrics between their own bank and the other bank. With just a few clicks and in a matter of seconds bankers can gather insights about how their own performance can be improved.

It is possible to do this manually as well, but it is nowhere near as intuitive and can take exponentially more time. Bankers would first need to go through all the reports by other peer banks and then compare the data from those reports to the data coming out from their own bank. Then they will have to manually analyze all the data to understand the differences between them in a spreadsheet. Even then they will have access to far less intelligence because they will not have any drill-down functionality in the spreadsheet and any other information will require them to go back to the reports by the banks and again extract the relevant data.

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Faster Insight

The biggest advantage of peer insights technology is that it provides all the intelligence that is required quickly. Any bank that tries to assess peer banks manually will find that by the time their assessment is complete the information in their reports is already a few days or even a week old.

Peer insight solutions bring all the intelligence the moment the data is available when banks release their reports. Is your bank looking for a way to understand his performance better and to gauge its own performance against peer banks? The Predict360 peer insights solution can help your bank quickly generate peer insights based on banks that are selected by your management. Get in touch with our risk intelligence experts for a demonstration of our solution and what it can do for your organization.