Influence of business analytics capability on cost Management practices in Financial Institutions

With the growing adoption of business analytics, banks are adopting it to help improve manager effectiveness as well as control spiraling operational costs in an age of digital transformation. NBFIs in Bangladesh face increasing cost pressure as a result of technology-related investment, compliance, and competitive service delivery requirements. However, there is a paucity of empirical evidence on the impact of business analytics capability on cost management practices in this industry. The purpose of this study is to investigate the effect of business analytics capability on cost management practices in selected NBFIs of Bangladesh. The purposes were to investigate the extent of analytics capability and comparative cost management practices and to examine the association between analytics resources with cost efficiency. Quantitative research design was employed and data were gathered by means of structured questionnaires from 384 respondents chosen through use of Cochran’s sample size formula. Analysis Descriptive statistics and regression were used for data analysis. The findings of the study indicated that NBFIs possessed a moderate-high level of business analytics capability, and moderate cost management practices. Business analytics capability exerted a positive and significant impact on budget accuracy, cost variance monitoring, automation of activities, and strategic cost strategy. Results show that institutions with advanced analytics infrastructure, analytical talent pool and higher top management involvement drive better cost control and lean operations. The study also found that enhancing business analytics capability is imperative to enhance cost management practice and maintaining financial performance of NBFIs in Bangladesh.