Financial Analytics What is Financial Analytics?? Financial Analytics is a concept that provides different views on the business’ financial data. It helps give in-depth knowledge and take strategic actions against them to improve your business’ overall performance. Financial analytics is a subset of BI (Business Intelligence) & ERP (Enterprise Resource Planning) and has an impact on every aspect of your business. It plays a crucial role in calculating your business’ profit. It helps you answer every business question related to your business while letting your forecast the future of your business.
Types of Financial Analytics Predictive sales analytics: The businesses that are harnessing the power of big data predictive models are finding that they are able to gain valuable insights about the state of their sales pipeline. Predictive models can help businesses anticipate what their clients’ needs will be, develop targeted & lead-generating campaigns. Client Profitability Analytics: It allows businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level or at the level of customer aggregates / groups. Product profitability analytics: Product Profitability Analysis allows you to forecast the profitability of new products you are planning to market and to optimize the profitability of existing ones. Therefore, it can firstly help you identify the most and least profitable existing products and clients.