The financial services sector has gone through an extraordinary change in the last few years. Customer demands are changing with time as they are expecting more personalized services from their banks. Today, information is available in abundance and is doubling in every two years. The biggest challenge for the industry now is to use the breadth and depth of the data available to satisfy the market demand.
The growth in data presents a kind of challenge as well as an opportunity for the financial industry. Companies need to unlock the potential of the data through analytics and shape the strategy for the business through reliable factual insight rather than intuition. The problem is tackled by using big data which enhances the performance of the organization and changes the way they interact with customers, competitors and the market through fact-driven decision-making. Organisations that master in this will be able to set the trend in customer service, improve profitability and respond more rapidly to the evolving regulatory and competitive demands of the industry.
The Emergence of Big data in Financial Services Industry
Data from customers remain at the epicenter of the financial services industry and need to protect, store and leverage this data correctly is gaining importance day by day. This has led to the concept of “open banking” which is the act of allowing consumers to securely and easily share their financial data with the trusted parties such as banks, financial technology firms etc. Owing to this big data, machine learning and advanced analytics have set themselves as a major force in keeping financial services businesses competitive and protecting the sensitive data within the industry.
Finding of Target Segments
Big data helps in better analysis of data and also provide financial institutions the ability to create more meaningful marketing efforts in identifying the target segments. By using data to target specific segments of the market, a brand’s message will resonate, thereby boosting conversion rates, customer share, and lifetime value. Big data tools help this segmentation to take place much quicker and more efficiently which ensures no resources are being wasted. This also helps in understanding the consumer purchasing behavior and leads to knowing the offers in which customers will be interested. Hence companies will be able to serve most relevant and appealing products to influence the purchasing behavior of the consumers.
Gain Loyal Customers
Gaining satisfied customer in this digital age is really difficult. Hence, it is most important to have a deep understanding of your customers to ensure customer satisfaction. Owing to all these, personalized service has become the key focus for any business. By having a singular platform for analytics that combines data exploration and governance as well as provides access, integration, and storage scalability, businesses will be able to effectively draw insights from this large amount of data to drive revenue. Technology is the key to unlocking this view and helps in gaining satisfied customers by determining the needs, what exactly they want with the help of technology.
Big data analytics will bring epic change in the value creation for the financial service industry. Now is the time when data must be used for businesses to make the crucial shift from a product-centric focus to a customer-centric focus. Organisations must act now and use big data in technology, marketing, and cybersecurity strategies to evolve the relationships with their customers, transform data into an asset, and stay ahead of their competitors.