Citation:

Laxmi Vanam, 2025. "The Role of Advanced Analytics in Financial Services Transformation.", ESP Journal of Engineering & Technology Advancements  5(3): 119-125.

Abstract:

Advanced analytics is a key component of the financial services transformation and provides financial institutions with tools to exploit massive data flows for predictive intelligence, automation, and customer-oriented innovation. This paper reviews the use of advanced analytics in risk modelling, fraud operations, enhancing customer attraction and retention as well as improving operational efficiency across core financial functions. The Financial Analytics Value Enablement Model (FAVEM) is presented as a conceptual framework that addresses the difficulties financial organizations face with analytics adoption, including challenges related to explainability, regulatory considerations, and antiquated infrastructure. Using recent research and industry case examples, the paper reveals that the integration of analytics is not simply a composition of algorithms and data platforms... it really comes down to organizational readiness and cultural alignment. This review ends with the implications in terms of future strategies for ethical AI, personalized banking and sustainable digital transformation.

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Keywords:

Tags Advanced Analytics, Financial Services, Machine Learning, Predictive Modeling, Explainable AI, Risk Management Digital Banking Fraud Detection Data Governance Financial Technology.