How Big Data Contributes to Customer Experience in Banking?

By Banking CIO Outlook | Thursday, December 26, 2019

Financial institutions are using big data to address the demands of the modern and thereby enhance the customer experience

FREMONT, CA: Data is one of the critical aspects of various industries. Data-driven trends are increasingly shaping the industries. This doesn’t elude banking either. According to a report, every message sent, every credit card transaction made, and every web page opened adds up to a total of 2.5 quintillion bytes of data produced daily. Further, digital banking is constantly adding up to the already massive repositories of financial data. Banks understand the business potential of such data sets and are moving towards big data to keep up with the growing data and utilize them for various business purposes. Among many aspects, customer experience is an essential aspect of banking that can be immensely transformed using big data capability.

With numerous financial institutions in the market, it is difficult for customers to choose a particular bank. Thus, there is an immense potential for the banks that have big data capability to improve banking experience. Banks can use big data analyses to understand the precise financial needs of the customers and serve them accordingly. The above ability will significantly enhance customer experience, thereby enabling the banks to establish long term relationships with the customers.

Banks can also utilize big data for targeting customers based on their spending habits. Big data capability aids banks with personalized marketing. For instance, banks can target customers based on their behavior on social media through sentiment analysis, which involves contextual mining of customer data. Such insights will enable the banks to compile credit risk assessment and provide customized products to the customers.

Big data can also be applied to develop and promote an organization-wide analytics strategy that will drive a concerted shift towards data-driven behaviors. The above strategy will enable the banks to collect, store, and use customer data effectively for banking operations. Such a strategy will ensure customer satisfaction and aids the banks in acquiring new customers as well.

With further advancements in big data, banks will further enhance their customer service, which will also be marked with a rise in operational efficiency.