Banking data analytics can fix internal process inefficiency

Ryan C. Luttenton
Banking data analytics can fix internal process inefficiency

The banking industry is changing fast, banks need internal audits that reflect this reality, and internal auditors can’t afford to do the same old thing. The challenge that many banks face, however, is that IA teams are so entrenched in their way of doing things, they often can’t recognize their own inefficiencies.

What’s considered efficient is constantly changing.

Just because a process works doesn’t necessarily mean it’s efficient or offers customers the most thoughtful insights into their risk. Thus, internal auditors need to consider implementing new technology that can allow them to focus on what’s important.

Are you wasting time and resources? Ask yourself these 4 questions.

Sometimes it helps to take a step back. Start by considering these questions for your team:

  1. Should we evaluate last year’s testing before making decisions about this year?
  2. Are all relevant risks and the nature of the audit apparent to us before we assess the audited party or control?
  3. Have we eliminated hunches from our decision-making about scoping and sampling?
  4. Do we allocate resources based on the area of highest impact?

If the answer to any of these questions is no, it might be time to start reimagining how you operate.

The key to efficiency is focus. And the key to focus is data analytics.

You can’t waste time or resources when you’re addressing risk. Banking data analytics can help you focus by organizing and visualizing your data. Banking data analytics also can illuminate trends and allow you to zero in on the specifics so that you know what to do. It’s not just interesting – it’s motivating.

Three examples of how banking data analytics can unlock new levels of efficiency include:

  1. Identifying issues proactively. Heatmaps powered by banking data analytics visually highlight areas of potential concern so you know where to look and don't waste time searching.
  2. Knowing where to sample. Testing widely takes a long time and even more resources. Narrowing the scope can help you focus your testing to areas of higher potential risk. Banking data analytics can help you identify those areas clearly and objectively.
  3. Planning your audit. It takes time to truly understand each audit, including all of the relevant risks. Dashboards provide a shortcut by revealing potential areas of concern so you can devote your audit resources to the areas where risk is highest.

When you're focused on what matters most, you're not focused on what doesn't matter.

It's time for internal auditors to move into the future. Crowe can help you build an efficient, focused team using banking data analytics.

Improve your team’s efficiency with banking data analytics.
To learn more, visit our webpage for Crowe Analytics Advisor for banking.

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Ryan Luttenton
Ryan C. Luttenton
Partner, Financial Services Consulting