Financial services organisations need to move more quickly when it comes to the practical implementation of big data analytics.
Many of the larger banks and insurance companies are just taking too long to make this happen, and there are no excuses as we, as an industry, have been talking about it for a long time.
Although many institutions may be working on big data initiatives, customers are not seeing much come out of it.
Banks and insurance companies have access to vast amounts of data that they have accumulated through customer interactions and transactions.
Banks have the benefit of knowing hard data about their customers’ earnings, transaction histories and much more. The best part is that this information is gleaned from authenticated customers, unlike some of the big retailers who capture a lot of data but can’t always authenticate the person making the transaction.
The insurance industry should be the leaders in the use of ‘new world analytics’. For hundreds of years insurers, through their actuaries, have been analysing data in relation to risk assessment and prevention.
Examples include analytics to predict when we are likely to die and how many home break-ins we might experience during our lifetime, with the predicted risks then factored into the premiums customers pay.