Banking / Finance

Big Data and Banking: Compulsion or an Option?

Banking is getting branchless, contemporary and digital at a very fast pace. As banks compete to gain competitive advantage, the need for managing big data and analytics becomes more relevant. Big Data has transformed the way traditional banks worked in the past and has been very helpful in informing decision-making. Through associated big data tools, banks can gain greater visibility into customers’ behaviors, assess the probability of risk and help small businesses. Big Data combines various data sources like the company, its channel partners, customers, suppliers, social media and even external data suppliers. Typically, the data collected in banks is so complex that it is beyond the ability of any traditional data software tool to manage it. Big Data solves this issue of storing, managing and analyzing complex and large data. With its increased accuracy and efficiency, banks are starting to realize Big Data’s value and are slowly adapting to this new change. For example, Wells Fargo has been able to cut the time spent on reshaping data and now uses that time to analyze it.
Improved Customer Relations
Banks have moved from traditional to digital banking and are trying to gain a larger customer base by widely advertising new ways to bank with them. A bank’s customer base can be voluminous and gets more complicated with the amount of different financial products that the bank sells. These include mortgages, car loans, home loans and other financial products. Traditionally, when a bank tries to sell its products to its customers, it completely ignores the fact that the product may be irrelevant to the customer. In modern banking, it has become important for banks to remain updated on the preferences of their customers.

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