Big Advantages of Big Data, Impacting Finance

Banking CIO Outlook | Monday, June 17, 2019

Digitalization and Big Data are ushering in a new era for banking and financing firms. With the right technological benefits in place, the sector improves rapidly.

FREMONT, CA: Big data and big data analytics are becoming instrumental for firms in the financial sector. The financial industry generates enormous amounts of data, and big data is helping financial firms manage and make the most from it. Analytics is helping the industry to extract the right information and put it to use through actionable business plans and policies. Smarter decision making has become the new norm for banks as they adopt technological advancements and high-tech solutions.

•  Customer-centric Banking

Competition is fierce in the financial industry. Big data can help companies gain an edge over their competitors by improving customer experiences. Well harnessed data allows companies to read their customers well and device customized services for individual customers. The better the quality of services offered, the better the customer satisfaction.

• Targeted Marketing

Individual spending and investments vary greatly. Hence, finance companies are utilizing big data and analytics to understand consumer spending dynamics. Insights gained from analyzed data create opportunities for companies to plan personalized marketing strategies. Personalized marketing is much more effective in influencing consumers when compared with general and collective marketing.

• Efficient Processes

Every process in the workflow stands a chance of being improvised and made more efficient. Data regarding the functioning of different departments and systems are accumulated and evaluated to check if they are competent enough. Subsequently, banks figure out how they can optimize specific processes that would lead to increased profitability and better resource management.

• Understanding Risks Better

Data plays an essential role in improving security in financial organizations. By monitoring and analyzing data, banks can track risks and detect vulnerabilities. Immediate action to plug the security loopholes prevents frauds and attacks.

Digitalization is at its peak. With big data, banks can keep a tab on the rising number of customers and their transactions. Resource management and profitability are becoming better, as well. Experts from the industry have predicted that the amount of data generated per second is about to grow 700 percent by 2020. With the right big data tools, financial firms can take advantage of this boost to a great extent.

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