Consumers and real estate investors turn to the expertise of banks to offer better mortgage rates, trusted service and the best forecasts on property valuations. Faced with such high demands, how can commercial finance pros deliver the best value considering all the shifting economic factors, constantly evolving demographics and inability to predict the future accurately?
There’s a secret weapon…
For commercial finance and banking professionals, “predictive analytics” will revolutionize the way they do business and the value they can bring to their clients. This powerful tool combines massive amounts of data with incredibly smart algorithms that help the software learn as it crunches more and more numbers — essentially becoming a predictive powerhouse. It’s exactly what we’ve been building at Gnowise, and it’s helped bankers, commercial finance officers and real estate pros expand their expertise in Toronto property valuations up to three years into the future.
In particular, we’ve seen several major challenges in the commercial banking sector when it comes to serving the client, and Gnowise can help solve those issues. Our enterprise-level solution can offer considerable advantages that will help you outperform your commercial banking competition.
Here are ten ways you can outperform your competition using smarter analytics and predictive data from Gnowise.
1: Acquire & retain new customers
There are so many real estate options to consider and let’s face it, clients can be demanding. Predictive analytics can help identify exactly which real estate options are the most impactful to the price of a property and the location of the investment.
With Ganowise advanced filtering, you can target the right customers based on market factors like property values, investment potential and the client’s risk comfort level. This makes it easier to identify high-value prospective clients and offer them perfect property options. You’ll be able to offer something different from your competition, gain new clients faster and reduce customer churn.
2: Accurately predict earning growth
With smarter analytics, banks can now estimate and report a more accurate year-by-year earning growth on properties. Gnowise enterprise data provides an incredibly accurate three-year forecast, meaning you can provide clients with the tools to make smarter investing decisions. Banks can also adjust their own investment in the real estate market as economic factors and the risk of the real estate market crash fluctuate.
3: Smarter mortgage rates
With so many institutions offering mortgages, the competition is fierce. Using Gnowise predictive analytics and smart data, banks can adjust their mortgage rate and lower their risk by having short and long-term market predictions. These predictions can be done based on data across the entire city of Toronto, providing an overview of the local market, or by laser focusing in on key neighbourhoods and geographic zones.
4: Pinpoint the perfect neighbourhoods
There are 140 Toronto neighbourhoods, each with its own set of characteristics that make for good and bad investment opportunities. Many clients will have preconceived notions of their target neighbourhoods, while others will be looking to you for expert advice on where to invest.
With advanced predictions and access to up-to-date data, you’ll know exactly where property values will increase and decrease over the coming one to three years. You’ll be able to tell clients which neighbourhoods are the most attractive (according to budget and risk levels) and you’ll have constantly updated information on the market fluctuations that can change any future predictions. You’ll be leaps ahead of your client’s “local” knowledge of the market.
5: Plan for cash flow and liquidity changes
Gnowise can also help you align future property sales, purchases, mortgages and financial planning with incredibly accurate analytics that can maximize your client’s cash flow and ROI.
For example, as prices increase in certain Toronto neighbourhoods, prospective buyers will need access to more funds. If they’re looking to invest in the next three years, you’ll be able to help accurately forecast their future and combine financial solutions to make it happen. This makes you a full-service financial solution, taking into account a client’s entire portfolio based on a factual analysis you can show them in real time.
6: Market the right message
Marketing is a huge opportunity with predictive analytics. The Financial Brand lays the story out boldly, saying, “The predictive bank of the future will analyze singular moments from individual customers across a wide range of devices, platforms, and products to identify patterns that make messages more relevant for customers.” They go on to say, “…these moments can provide banks with cumulative intelligence to inform how they should be segmenting audiences and customizing the experience.”
With Gnowise, you can make sure your marketing message is on point by using location-based tactics to spend your advertising dollars on the right geographic areas. For example, banks can focus deploy local advertising using geo-targeted keywords to flag people’s attention — ie. neighbourhood names, nicknames, intersections and local hotspots. They can then send impactful information to clients living or working in these key areas — providing accurate real-time data points on potential ROI to people living or working in key areas. Now that’s valuable marketing.
7: Outsource your data analysis
It’s a monster job to stay on top of all the data — especially if you don’t have the right tools and people. Data scientists are experts at this; however, most companies haven’t invested in true data departments that can handle new predictive technologies. “Despite the desire to use “big data,” most financial organizations have had limited skills, challenges dealing with data sources and silos, had limited budgets and/or lacked organizational support,” according to The Financial Brand.
Without internal forecasting, it’s incredibly challenging to make accurate strategic decisions. Gnowise eliminates that concern as it constantly evaluates the most current economic data and local real estate factors, then outputs real-time reports based on your search criteria. By analyzing more data than humanly possible, this frees up your time to focus more attention on the strategic execution.
8: Lean on brilliant machines to outpace the industry
What if computers were capable of building on their own abilities, getting smarter and more efficient as they take on more tasks? It’s called machine learning, and it’s happening in many software applications and industries, including Gnowise. Every day you use Gnowise, it’s smarter than the last — and that constantly puts you ahead of the curve.
The world’s foremost business leaders are preparing for this inevitable shift. Shard Pichai, CEO of Google, explains the importance of new tech to the corporate direction, saying, “Machine learning is a core, transformative way by which we’re rethinking everything we’re doing.” While financial powerhouse, Daniel Pinto of J.P. Morgan goes further to explain how changes in the industry must always be assessed and met with the right internal resources. “We have also established teams dedicated to areas such as blockchain technology, big data applications, and robotics.”
9: Attract Millennials and Gen X
The coveted Millennial and Gen X clients are digital rockstars. Nearly 70 percent of all consumer interactions with a bank are done digitally, as indicated on the 2017 Pace Report from FIS. “Today’s consumers aren’t looking for a loan, per se. They’re looking to fulfil their aspirations around planned life events. In Canada, more than eight out of 10 young millennials and three-quarters of Gen MX have at least one life event planned that will affect their finances during the next two to three years.”
These clients are highly skilled and comfortable with digital banking and tools — in fact, they expect it. With Gnowise predictive analytics, you can offer these clients a powerful new tool that brings innovation to the forefront.
10: Know when clients are ready for change
“Banks should consider using data analytics to anticipate when significant consumer life events, such as buying a car or house, are likely to occur. Key lifestyle indicators can be paired with models to generate appropriate and timely recommendations customized to the individual,” as the FIS Pace Report also indicates.
With Gnowise data, you can uncover patterns that indicate when the market is heading for higher purchases or sales. You’ll be able to forecast trends that appeal to clients at different life stages and can be there when they’re ready to make that change. And since Gnowise integrates with existing bank software and tools, you’ll have an even more powerful toolkit at your fingertips.
It’s an indisputable necessity to keep up with predictive analytics in commercial finance. The Financial Brand not only agrees but is certain that banking pros can achieve great things with new technology.
“This isn’t just some unattainable dream either. Financial institutions who commit to a fully robust data analytics strategy will have the technological power to capture, analyze, and act on these moments as they happen — in real time, and in a programmatic manner. Banking providers that accelerate and prioritize their analytics capabilities will create truly exceptional, meaningful and memorable moments for consumers.”