Smaller banks have a distinct disadvantage compared to their bigger counterparts when it comes to understanding their customers through data and analytics: they simply have fewer resources to do the job. Until recently much of the big data innovation in banking has been coming from larger institutions, but by working with partners smaller institutions are now starting to gain data-based insights on their customers as well.
“The big banks have more investment and time at using data and analytics for customer insights… but the market has a away of creating props for other organizations at a smaller scale. Silicon Valley innovation will help the late-comers catch up to the early movers,” Chandan Sharma, the global managing director of financial services marketing for Verizon Enterprise Solutions.
Sharma says that Verizon has been investing heavily in its cloud offerings to help provide the storage and compute necessary for big data and analytics at lesser cost, and established a relationship licensing cloud model with Oracle. The lower cost could enable more smaller banks to start making use of all of their data, but many banks still harbor doubts about trusting their customers’ data to a cloud provider, Sharma acknowledges.