Why embedded reporting is a core element for fintech development

Data and analytics are invaluable across industries nowadays to manage risk and improve customer satisfaction — among other benefits. According to recent reports, 79% of financial institutions  believe data and analytics can help revolutionize customer relationships through personalized services.

In addition, big data analytics can reduce customer churn by 9% and increase annual revenue by 20%. As a result, more and more financial institutions are implementing technological solutions and integrating sophisticated reporting capabilities directly into their software applications and product offerings.

The fintech market growth over the last 5 years

The rapid technological advancements that the financial industry is currently witnessing, along with the increasing consumer demand for digital financial solutions, have driven exponential growth in the fintech market. This has become evident in the creation and development of more and more fintech startups.

Another significant proof of this continuous growth is the widespread adoption of digital banking, payment, and investment platforms. According to McKinsey , there’s been a notable uptick in fintech users worldwide. When it comes to digital payments, for example, predictions indicate the global user base could exceed 3.5 billion people  this year.

But how is this increased adoption of digital platforms and rapid growth of fintech companies impacting the entire financial industry?

Why the rise in fintech companies?

According to the World Economic Forum , there is an increased customer demand for financial services that are more:

• Personalized
• Efficient
• Affordable
• Secure
• Accessible

This shift has created an opportunity for fintech companies to step in with technologies that help cut down operating costs and offer more competitive services. The implementation of automated solutions, for example, has allowed fintech companies to improve their use and delivery to customers through more accurate and faster services.

The ability of fintech businesses to enhance service delivery through real-time data has also made them attractive partners for banks and other financial entities. As a matter of fact, a vast majority of these institutions plan to boost their collaborations with fintech firms over the next three to five years — expecting an average return on investment of 20%  from their innovation projects.

How is this impacting the financial industry?

The rise of fintech offers numerous benefits to individuals and businesses alike. Fintech companies help financial institutions provide more personalized and user-friendly services through features like real-time notifications, intuitive mobile interfaces, and more. Moreover, automation and streamlined processes reduce operational costs for fintech firms, which often translates into lower fees for consumers and more competitive service offerings — a win-win.

Digital platforms and mobile banking extend financial services to remote areas and individuals who lack access to traditional banking. Embedded reporting integrates directly into these applications, making financial data and insights easily accessible to users, regardless of location. For underserved populations, this means customers can monitor their financial activities and investments directly on their devices.

Embedded reporting: What is it and why is it a core element of fintech?

Fintech firms often leverage data through reporting and analytics to optimize their operations, enhance risk management, and improve customer engagement. Embedded reporting transforms vast datasets into actionable insights inside an application users are already familiar with. It also provides a place to centralize data analytics and allows companies to leverage pixel-perfect reporting for statements, dashboards, and charts for their clients. This, ultimately, promotes stronger customer relationships, better retention, and higher profitability.

Recent data suggests that 64% of fintech users  expect to be able to see all their financial data in one place. Embedded reporting integrates data analysis and visualization features directly into a software application or platform and enables fintech businesses to create detailed reports customers can rely on — such as monthly and quarterly investment statements (401k, IRA, and more). This integration fosters a unified environment where data and insights are readily available, allowing users to access and interact with reports without leaving the application.

Embedded reporting helps financial organizations build a competitive advantage that’s sensitive to changing end-user behavior. These reports offer fintech businesses a closer look into the individual spending patterns and financial behaviors of their customers and provide more personalized financial advice and present opportunities that align with their goals and risk tolerance. This makes their fintech product stickier, boosting the value of current users and lowering overhead expenses. Other benefits of embedded reporting include:

• Data-driven decisions: Embedded reporting lets users seamlessly access insights without toggling between different tools. The immediate access to relevant data leads to more precise and timely actions.
• Agility: Embedded reporting offers flexibility to customize reports through dynamic dashboards. This adaptability will keep your product responsive to shifting market trends and user requirements. Ad hoc reporting is also possible to save time and effort most companies usually spend manually creating regular reports.
• Improved customer experience: Embedded reporting offers a more cohesive and satisfying experience. It reduces the need for users to navigate external systems, making access to valuable insights a lot easier for users.
• Revenue growth: Embedded reporting lets you attract more high-value clients through value-added services and personalized insights, which will, ultimately, increase your bottom line. Data monetization also plays a significant role in revenue growth by creating new revenue streams through premium reporting features or analytics services.
• Self-service analytics: With embedded reporting, users can independently generate and explore data without relying on external support. This autonomy improves user satisfaction and reduces the operational burden on your support teams.
• Single source of truth: Consolidating data within the embedded reporting framework minimizes inconsistencies and discrepancies. It boosts trust and reliability of reported information.

Example use cases

Embedded reporting offers numerous applications in the fintech sector. Here are just a few of the most relevant examples:

• Fraud detection: Real-time analytics and alerts integrated within the platform help spot outliers and detect potential fraudulent activities as soon as they occur. This helps prevent issues and address them timely before they escalate.
• Compliance: Embedded reporting helps maintain adherence to regulatory requirements through up-to-date compliance reports and audit trails. Having all compliance actions documented in one place aids businesses in preventing costly errors that can often happen due to complex and many requirements.
• Portfolio and personal finance management: ​​Users can monitor and manage their investments and financial health with customizable, interactive dashboards. Embedded reporting also allows you to provide high-quality, pixel-perfect printable reports for statements, investment summaries, and other official documents.
• Market insights: Embedded reporting allows users to take a deep dive into market trends and performance. This can significantly improve their strategic decisions and a financial institution's operations.

Build vs. buy in embedded reporting

When thinking about embedded reporting solutions, fintech companies often consider whether building an in-house solution or purchasing one from third-party providers is the best choice for their application. While both options have their advantages, whether one will be better than another depends on the company's specific needs and use cases. Before making a final decision, consider the following aspects:

Advanced capabilities

With enough time and resources, fintech companies can tailor custom-built solutions to their specific needs. However, they may lack the scope of features like self-service capabilities or pixel-perfect reporting and the continuous innovation offered by third-party providers. Third-party solutions often include added functionality such as multitenancy, data governance, and advanced security, which helps organizations stay compliant with industry standards and best practices.

Time

Developing an in-house solution is a feasible option, especially for those companies that want customizable solutions. However, the process is time-consuming and requires significant resources and specialized skills for development, testing, and maintenance. Purchasing a third-party solution allows for quicker implementation, faster time to market, and immediate benefits.

Resources

In-house development demands a substantial investment in skilled personnel, infrastructure, ongoing support, and more. During the process, unexpected costs can hinder operations. Third-party solutions typically come with comprehensive professional support and updates, which reduces the burden on internal resources. Users can also more accurately predict costs.

Leverage the benefits of embedded reporting with Jaspersoft

Integrating sophisticated reporting capabilities directly into your applications is a game changer for customers and their end clients. Not only does embedded reporting streamline workflows, but it also makes data-driven information more accessible. This is vital for improving customer experience and, thus, increasing a financial institution's revenue opportunities.

If you’re looking for embedded reporting solutions for your business that deliver superior data visualization, self-service BI, pixel-perfect reports, and much more, Jaspersoft has you covered. As one of the world’s most widely downloaded reporting tools (with over 6 million downloads), we offer unmatched expertise and reliability.

Contact us today or start your 30-day free trial to see how our flexible and customizable embedded reporting solutions can elevate your analytics and drive better decision-making.