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The impact of analytics has completely transformed the banking functions, and data is seen as the most valuable asset to stabilize the overall evolving banking environment successfully
Fremont, CA: Big data has opened up a plethora of opportunities for the banking sector to grow. Data has become the driving force behind every industry’s growth, and the banking industry has implemented traits such as data and analytics and has tremendously transformed its functions.
Here are five key banking analytics trends that are transforming the banking sector in 2020:
Innovations in the banking industry's payment structure will continue as it is propelled by dynamic consumer experience and technological transformations. Data and technology will be the driving force behind the changing progress of payment.
Banks are now targeting customers based on their values, aspirations, lifestyles, and mindsets instead of demographics-based clusters. This trend will further escalate with more banks developing individualized banking experiences for its customers through data and advanced analytics.
This personalization is achieved by grouping a customer base with advanced criteria such as human-centric, design thinking pillars, and CRM tools that help banks and financial institutions match customer needs to real-time solutions.
Customer retention is one of the priorities of the banking industry; banks will integrate machine learning algorithms into the banking system for their predictive abilities to give real-time information about customers. Another priority is fraud prevention, and by using data science, banks can alleviate frauds and money laundering by lending to only those who follow the regulatory norms.
Predictive banking is one of the most innovative and exciting trends taking the banking sector by storm. The banking industry can now merge internal and external customer data to know their customers and build their predictive profiles.
With the improved use of data, financial institutions can offer consumers value-driven services through the next best actions rather than blind selling of products.
The trend of secure data sharing through APIs with third parties to power new financial services has given greater freedom and control to consumers in how they interact with their financial service providers. The potential of Open Banking and the way it is changing the face of the financial landscape by helping financial services providers enhance service offerings and improve overall customer engagement is gaining recognition globally.
See also: Top Big Data Solution Companies