Some financial institutions are opening digital-only banks to collect deposits, and others are utilizing digital platforms for loans, investments, and other services. In both of the cases, the purpose is to enhance customer experience, supported by customer data and analytics
Fremont, CA: Data is driving the growth of every industry, financial institutions being one of it. Over the past few years, the eruption of big data has created vast opportunities for the banking sector to grow. Data has completely transformed the banking functions and is considered as the most valuable asset to help sustain the evolving banking industry.
Here are some vital banking analytics trends to look forward in 2020:
Digital banking is becoming more popular among customers. Some financial institutions are opening digital-only banks to collect deposits, and others are utilizing digital platforms for loans, investments, and other services. In both of the cases, the purpose is to enhance customer experience, supported by customer data and analytics. In 2020, more banking institutions are expected to turn into digital-only banking so that they can protect their customer base and expand their market share by leveraging open banking APIs and cloud technologies.
The banking industry has a lot of scope for innovation in the payments infrastructure area. Innovations in the payments sector will foster due to constant technological advancements and customer demands. Data and technology will drive the evolvement in payment infrastructure.
The continued development of predictive banking is another interesting trend the banking industry will embrace in 2020. Predictive analytics allows banking organizations to consolidate internal and external customer data to achieve transparency and predictability of customers' finances. With the help of customer data, financial institutions can offer customers value-driven services instead of blind selling of products.
Addition of Advanced Analytics
Preventing fraud and retaining customers are both equally important in the banking industry. In 2020, more banks are planning to incorporate machine learning algorithm into their system for its predictive abilities. This will provide real-time information to the banks about the customers who are contemplating to change their service provider. In addition, data science will play an important role for banks to minimize money laundering and frauds.