Banking / Finance

4 ways financial institutions can bank on big data in 2015

14th Apr `15, 01:57 PM in Banking / Finance

A customer walks into the bank to make a deposit, greets the teller and, out of the blue,…

BDMS
Guest Contributor
 

A customer walks into the bank to make a deposit, greets the teller and, out of the blue, she’s asked if she would like a second mortgage. Is this any way to serve a valued customer? Not if she isn’t in the market for a second mortgage.

But what if she is?

It’s common practice for banks to widely advertise their low rates on mortgages, car loans and home equity lines of credit, hoping this buckshot approach will hit the right target. The risk is that a weary, oversold customer might take his or her money elsewhere. Big data is now taking the guesswork out of discerning which individuals are the best targets for a particular product.

By using predictive data analytics to interpret a wide range of internal and external data on customers—including their online browsing habits and social networking communications—financial institutions can make more opportune and timely pitches. While this may sound a bit “Big Brother-ish,” the Internet is a vast warehouse of information and the benefits to consumers are considerable—discounted products and services arriving at a time when they are in the market for such goods.

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