Banking / Finance

Unlocking the potential of big data in the banking sector

30th Oct `14, 03:25 PM in Banking / Finance

To sustain an advantage in a consumer-empowered economy, financial institutions must develop an in-depth understanding of customers they…

BDMS
Guest Contributor
 

To sustain an advantage in a consumer-empowered economy, financial institutions must develop an in-depth understanding of customers they service and markets they operate in. Many marketing and product teams continue to rely on consumer surveys to obtain important information that guides decision making process in developing new products and launching advertising campaigns. However, banks have access to more customer information than businesses in any other sector, and it is vital to effectively leverage information assets.

Currently, transactional data remains one of the keys areas of focus for financial institutions. Analyzing transactions can uncover powerful insights into customer needs, preferences and behaviors. However, transactional data represent only one type of information assets that banks possess. Other important types of information that reside within an organization include both structured data (demographic profiles, website browsing activity) and unstructured data (call center logs, correspondence). In addition to these rich internal data sources, banks can take advantage of the external data.

Social media represents an important source of the data that banks can integrate with their existing information to develop a holistic view of their customers. Social media also offers many opportunities for developing personalized campaigns and offers. One of the areas of interest to the leading banks is utilizing social media data to target customers and leads with personalized offers and campaigns based on the recent life events, such as birthday, graduation or marriage. As the volume, velocity and variety of the internal and external data continues to increase, banks need to equip their employees with tools and skills to glean powerful insights from the data to drive business forward.

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