Industry analysis is critical for any business professional looking to stay competitive. Whether we’re using it to gauge the competition or track our own progress, we regularly monitor our own performance. For financial institutions, industry analysis must also include monitoring customers’ performance to gain new insights that enhance credit risk management.
Knowing your customers’ competitive landscape is useful for a myriad of reasons. Looking at how industries in your area perform allows you to see trends and assess potential market opportunities. If you’re considering expanding, or repositioning, your target client base, industry information is an extremely valuable tool to assess the health of different industries.
Let’s say you’re considering repositioning your financial institution to focus on a new industry niche, but don’t know which industries to target specifically. By gauging an industry’s health as a whole, you could decide that the restaurant market in your area has remained stagnant while the technology industry is booming. This gives you a starting point for advertising, networking, and reaching out to potential clients. By analyzing current industry trends, you could more confidently point your bank or credit union in a new direction and possibly save it from investing in a poor market.
In addition to being able to better target your prospective clients, industry information allows you to better help your current clients by assessing their specific industry’s health. Offering your clients deeper insight into their industry and new products to help them grow in it opens opportunities for engagement and increases the likelihood they’ll see you as a trusted advisor, rather than just a bank.