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3 Reasons Brokerage Firms Use Power BI

Updated: Mar 14, 2023

Power BI is a Microsoft data visualization tool that allows users to combine disparate data sources into a comprehensive view for analysis and reporting. With the ability to manage millions of rows of data and hundreds of integrations with other analytical tools, top companies are turning to Power BI as the solution for getting actionable data into the hands of executives, analysts, salespeople, and front-line employees.

The financial industry, which runs on data, has embraced Power BI as a leading tool in its toolbox of ways to gain a competitive advantage. Firms that capitalize on financial transactions in all market conditions understand that it’s critical to monitor major trends of company performance, as well as minute details that are driving performance. While Power BI is becoming more popular among industry leaders, many brokerage firms still monitor progress and make decisions based on monthly reporting via Excel, PDF, PowerPoint, or other means, which can be time-consuming and lack strategic insight.

In this post, we’ll cover three reasons why financial brokerage firms are turning to Power BI to solve their data needs.

#1: Revenue Generation

Achieving and maintaining a competitive advantage is the greatest challenge in business. Firms that excel in this have a thorough understanding of their business operations and customers. In a world of data, businesses must find a way to sort through the billions of data points to lay the foundation for tracking business performance and identifying opportunities to increase revenue. Power BI is an industry leading tool used to execute on enterprise data strategies and inform executive decisions at great speed. Below are just a few of the ways brokerage firms are using Power BI to maintain and increase revenue:

Attrition Research

  • Time stamp analysis allows analysts to see when a customer started doing business with the firm, and when this relationship ended

  • Power BI allows you to overlay disparate data sources to understand what correlates with attrition rate and determine key drivers

  • Working in coordination with marketing and operations, brokerage firms can reduce attrition and improve customer loyalty

Stockbroker Reporting

  • Stockbrokers working with their client base are relied upon to make sound investment recommendations

  • Some stockbrokers are inherently better salespeople; however, salespeople are ultra-competitive, making performance ranking effective for improving sales

  • Power BI makes daily or near-real-time refreshed reports on sales performance available to stockbrokers to motivate them to outperform their peers

Google Analytics

  • Present day, most client engagement happens outside of brick and mortar locations, making online interactions critical to the bottom line

  • With regularly updated Google Analytics reporting, firms can identify drop off points that are reducing revenue potential

  • Additionally, Google Analytics tracking can be paired with overall marketing spend tracking to measure effectiveness of a revenue generating campaign

#2: Cost Reduction

Among top industries in the US, Financial Institutions have some of the largest data bases of customer information. From daily transactions and accounts under management tracking, to account level fees and commissions, there is a significant amount of reporting required to monitor company performance. Power BI uses intelligent analytics and automation to bring cost reduction opportunities to data heavy organizations:

Monthly reporting

  • Some firms may spend up to a week each month finalizing reports, leaving strategic work on the backburner or requiring additional resources with limited breadth in their role

  • Power BI can be configured to quickly produce reports in a variety of formats, with automated notifications, to meet business needs

  • Automated reporting saves companies time and money indefinitely, which opens up investment opportunities for growth areas

Scalable Solution

  • A Power BI Pro license is available for just $10 per user per month, making the tool a small investment for building your data strategy

  • If you have a large number of users, alternative options for keeping costs lower are available, such as custom web applications that do not require user licenses

#3: Security

When it comes to financial information, data privacy is paramount. As the number of scams and malicious users increases, financial institutions’ reputation and revenue are increasingly at risk. Luckily, with Power BI, there is no tradeoff between risk and reward, as the cloud-based, multi-tiered defense security solution was designed with data privacy at the forefront. Power BI has earned the highest security classifications in the industry and is used by many financial institutions, national security agencies, and healthcare providers every day. While the technical explanation is in-depth (Power BI documentation - Power BI | Microsoft Learn), below is a summary of some of the key features of Power BI’s security model:

Access Control

  • Power BI allows administrators to control access to data and reports by setting up role-based permissions

  • Microsoft makes managing permissions easy, utilizing email addresses and a straightforward user interface

  • This approach removes reliance on IT to provide administrative services for data access while ensuring only the correct users can access sensitive data


  • Power BI uses advanced encryption methods to protect data in transit and at rest

  • It encrypts data using industry-standard encryption protocols, such as TLS and SSL, to prevent data interception and hacking attempts

Multi-Factor Authentication

  • Power BI offers multi-factor authentication (MFA) to add an extra layer of security to the login process

  • MFA requires users to enter an additional security code, such as a fingerprint or a security token, to access their account


  • Power BI is compliant with several data security standards, such as GDPR, HIPAA, and ISO 27001

  • These qualifications allow financial institutions to build Power BI reports with comfort, knowing their regulations are upheld with minimal effort

Every day, data continues to grow and provide opportunities. Without an organized strategy to manage this data, it will be difficult for brokerage firms to keep pace with those that are investing in data management and analytics. Power BI is a scalable solution that can directly impact a firm’s bottom line in a positive way by reducing costs and providing opportunities for revenue growth. Financial firms can invest in this technology with confidence that their data is safe, as Microsoft has designed a product that will meet even the strictest security guidelines.

Many firms lack the time or do not have an internal organization with deep expertise to begin building this data strategy. IT departments may be leveraged, but often don’t have the analytical expertise to extract maximum value from analytics. BI Nest Inc. is a trusted partner in building a Power BI strategy and has deep experience in the financial services industry.

To get started with your BI strategy, contact BI Nest today.

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