Get the Crux on Big Data! Find Out Why Is It So Advantageous for Banking?
Accenture had recently confirmed that Fintech investment has been soaring lately as it was more than $12 billion in 2015 worldwide. And Gartner also came up with the fact that most financial service companies are using Big Data — as much as 64%! And the numbers show no signs of abetting. Right after the 2008 Great Recession that affected banks worldwide, the Big Data analytics has turned things over in the financial sector.
With banks much into the digitalizing processes, they use many technologies such as Hadoop and relational database management systems (RDBMS). Traditional banking methods have hit an all-time low as more and more customers are veering towards using online modes of banking. Big data solutions are extremely vast and swift, and today, they are an integral part of marketing and business strategies.
Companies in banking and finance are advantageous as the information in their customers’ transactions needs to be documented online for specific regulatory requirements. This information may allow the companies to gather specific information on consumers, to find out more about future behaviors, and to aid in making real-time decisions based on real-time data. What’s with big data in banking, and why is it advantageous for banking?
Eliminates Errors Minor or Otherwise With Efficient Risk Management
BI or Business intelligence tools help identify potential risks that have links with money lending processes in banks. With the help of big data analytics, banks can evaluate the market trends and find out whether they should increase or lower interest rates for several individuals across various varied regions.
There will be a significant reduction in data entry errors with big data point out anomalies and in customer data. It is easy to identify customers with poor credit scores with the help of fraud detection algorithms. Big data applications can limit fraudulent transactions that can lead to terrorism or anti-social activities.
Personalized Banking Solutions Right at Your Doorstep
Big data analytics can help banks to find out more about customer behavior. They are based on investment patterns, customer investment patterns, shopping patterns, and financial backgrounds. This data is especially helpful in wooing customers and provide personalized banking solutions creating a symbiotic relationship between customers and banks. Banking solutions catering to personalized needs can also create lead generation.
Catering to Regulatory Compliances
Most bank employees say that bank services can cater to the regulatory compliance criteria as per the government guidelines, as 68% of bank employees say that they are concerned about banking services. With the help of BI tools, one can keep abreast of the regulatory requirements as you go through every application from customers for proper validation.
Performance Analytics Helps Aid Overall Performance
Performance analytics helps assess employee performance and evaluates how they have fared based on their monthly, quarterly, or yearly targets. As per the facts and figures derived from the employees’ sales targets, big data analytics come to aid in numerous ways and how to scale them better. And banking services are properly evaluated to check what happens and what does not.
Help Analyze Customer Feedback
A bank’s customer support centers around getting inquiries and feedback generation regularly. Today, social media platforms act as a sounding board for proper customer experiences.
Big Data tools are highly effective in sifting through large data sets and quickly and effectively cater to each of them. Customers who feel that banks are giving importance to their feedback or giving value will remain loyal to the brand. Ultimately, it is up to the banks to ride the Big Data wave, and if they don’t jump into the Big Data bandwagon, they may not stay relevant and fail to survive the digital age.
Big Data has the potential to bring a lot of things on the table. The biggest advantage is bringing in the customer insight and engagement, also thrown in the improved market trading analysis. And of course, improved fraudulent activity detection and prevention, among many other things. The most important contribution is certainly the Big Data contribution to the BFSI sector ‘real-time evaluation.’ It allows banks and financial institutions to gauge customer behavior in real-time and offer immediate, individualized solutions.
As the service quality improves and delivery time reduces significantly and enhances customer satisfaction while ensuring all-total profitability to the concerning organization. In short, it means better services at lower costs. That’s what Big Data Analytics and tools promises.
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