Maximizing System Utilization: Harnessing the Potential of Reporting Systems

A key aspect of success in today’s competitive banking environment is the ability to use data analytics to identify trends, improve operations, control costs and enhance the customer experience. Leaders rely on effective data analysis to make better business decisions, but that analysis requires strong reporting capabilities. However, sometimes those capabilities are hidden within the system, and no one is tapping into their true potential. In this third installment in a series of blogs about maximizing system utilization, PRI experts explain how and why it’s important to fully utilize the system you have when it comes to business intelligence and report writing. 

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In the article The Role of Analytics in the Banking Sector, the International Association of Business Analytics Certification (IABAC) writes that data analytics in banking has significantly transformed how today’s banks operate and serve their customers. To intelligently analyze the large amounts of data a bank can collect, strong reporting capabilities are necessary.

“Banks gather data from customer transactions, loans, credit card use, and external factors like economic trends. By analyzing this data, they can better understand their customers, identify potential risks, and find ways to operate more efficiently.” – IABAC

Some banks continue to rely on manual, less sophisticated reporting functions like a simple Excel spreadsheet to generate reports on complex data, while not realizing the existing system offers strong, automated reporting capabilities that they are not using. And if no one knows how to use them, they are going to waste. 

Know What You Need

When delving into the system’s reporting capabilities, PRI Data Engineer Leslie Unrue says it’s crucial for bank leaders to first articulate the key metrics they need to understand and for which they want to receive reports. Often, people will know the data is available somewhere, but they’re not sure how to get at it to create reports that synthesize information into understandable stories of the current environment.

“Sometimes the core vendor can help with setting up reports, but it’s important for the bank to advocate for itself using the metrics that are most important to them and their business strategies,” Unrue said. “Be willing to dig in to understand the system’s ability to get you what you need.”

In addition, Unrue said while banks will sometimes tap their vendors to create certain reports for them, it is crucial to validate the integrity of the data. Errors may be unknowingly introduced into the process that affect the reports. Before a bank bases decisions on reports generated from outside, they must take a step back and validate.  

“The output is only as good as the input,” Unrue said. “There must be good systems at the front end ensuring that data input is accurate and timely, or the reporting – whether done by a vendor or the bank – will not be as valuable as it could be.”

Data Lives Here

PRI Consultant Shawn King said there is power in the crossover that a well-considered report can provide.

“Sometimes leaders know what they want to see, but they’re not sure where to go to get the information and they find themselves bombarded with a lot of reports that don’t answer the questions they’re asking,” King said. “Good system reporting allows you to pull data from different places, such as the core and LOS, and combine the pieces to create a more complete picture of a customer or a trend.”

Systems with strong reporting capabilities can pull data from the following and combine it to create a bigger picture:

• Core
• Loan Origination System (LOS)
• Financial Management
• Deposit Systems

The Right People for the Job

The reality at smaller banks is often that everyone is wearing multiple hats, and nobody owns the specialized hat called “data reporting.” Each division may pull different reports, but no one has a holistic view of the data and what it could do for the organization.

“Perhaps IT is responsible for pulling reports, but they don’t necessarily understand the lending business line for example,” Unrue said. “If the reporting function needs to live in IT, there should be a partnership with the business lines to ensure reports are meaningful, accurate and helpful.”

Data analytics is an important enough function to ask if it makes sense to have a centralized person handling data and reporting. But if it doesn’t, at least find a way to cross over departmental efforts.

Training is Key

Wherever the data reporting function falls, be sure those employees are receiving constant training on the systems. Unrue recommends capitalizing on any vendor-provided training, but she says the bank should also have employees read system documentation internally and educate themselves about reporting capabilities.

“Vendors can experience turnover and new employees may not know the system as well. At the same time, the bank must also take the initiative to clearly communicate what it needs,” Unrue said.

When it comes to business intelligence and report writing, the key is understanding the importance of data analytics to help banks make smarter decisions, reduce costs, create new product lines and improve the experiences of their customers. Utilizing the existing system to provide well thought out, targeted (and automated!) reports will save everyone time and keep the organization tightly focused on its strategic goals for success.

PRI experts and article contributors 

Leslie Unrue has a proven track record of leading successful implementation projects, upgrading technology and developing innovative solutions to mitigate risk and enhance operational efficiency.  

Shawn King’s primary areas of expertise include lending and lending operations, credit underwriting, loan policy, risk grading, process improvement, and software implementation and development. 

Resources 

Maximizing System Utilization: Ditch Paper and Manual Processes – Profit Resources, Inc.

Maximizing System Utilization: Understanding Parameters and Capabilities – Profit Resources, Inc.

Wasting Time: 8 Opportunities for Improving Operational Efficiency – Profit Resources, Inc.

The Role of Analytics in the Banking Sector – The International Association of Business Analytics Certification (IABAC)

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