In today?s competitive, complex and rapidly changing business world, based on information, it is very essential to have timely and accurate insight of business conditions and activities to check whether they are healthy and according to business norms. Information obviously plays a critical role to have this insight and it can only be of avail, if it is directional, focused, timely and easily accessible and also if it gives both the macro/strategic and the micro/operational view of the company. Due to the advancement in information technology, state-of-the-art technologies like business intelligence (BI) have been developed to provide us the above features. This paper provides reader an insight of BI and its strategic importance. It also explains how BI can be effective technology in industries like banking to overcome critical issue like fraud discovery and detection. The methodology, based on BI, in the form of model named BI model for fraud discovery and detection has been devised and suggested at the end of paper along with it its details for overcoming the above mentioned issue in more effective and efficient manner.