People around the world are generating more digital data than ever. Across the globe, 2.5 billion gigabytes (GB) of data are produced every day, and International Data Corporation (IDC) has estimated that this number will increase to 40 trillion GB by 2020. Within this pool of data is the information financial institutes are leveraging to analyze and improve their business processes, create customized marketing campaigns, efficiently organize reports, and comply with regulatory standards of the banking industry, this where data analytics comes into the picture.
The banking industry uses big data analytics to improve the way they market products to boost their profits, plan their budgets, and the future. Not only this but big data analytics also aids financial firms in discovering and targeting high-value accounts, identifying competitors’ weak spots, improving the relationship with clients, and expanding cross-sales. Adopting analytics and its strategies will demand a combination of training and hiring of employees based on their knowledge of the big data analytics subject. Furthermore, when it comes to handling monetary funds, risk management is the most significant and critical area to be focused on. Big data analytics gives banks insights into their systems, transactions, customers, and operational environments to help them evade several risks.
With the large volume of data present today, banks can access the previously incomprehensible information about their customers to make the financial systems more transparent to detect fraudulent activities. Banks can also utilize big data analytics to measure the performance of their business and employees to create branch budgets and employee goals based on past accomplishments. By analyzing their business performance, banks can enhance the products, features, and services they offer to customers, based on the current market demands. On the other hand, examining the performance of employees allows banks to allocate financial resources and incentives to its operators.
Big data analytics also allows disparate departments within a bank, such as marketing, sales and IT, to work more cohesively as a single unit rather than separate modules. Therefore, with these many benefits, big data analytics is aiding financial institutes to remain competitive and secure in today’s digital ecosystem.