BIG DATA FINANCIAL SERVICES- Big data is a blanket term used to describe the innovative technologies used for the collection, organisation, and analysis of structured and unstructured data. Big data technology allows users to work on complex information to generate meaningful conclusions and findings. Big data is known for its veracity, velocity, and value.
The financial services sector is an intensive data-driven industry that manages enormous volumes of sensitive data. The entire finance sector calls for intensive data analytics for the benefit of customers and the financial services providers It helps the financial service providers to exploit the rich data sets they have collected over the years and deliver compelling use cases.
Impact on the Financial Services Sector
The impact of big data on the financial service domain is promising. Data is the most critical asset of financial organisations and they have found ways to leverage this data. Studies have shown that 71% of banking and financial market firms that use information and big data analytics have a competitive advantage against their peers. It affects the way consumers access their finances, investments, payments, and other aspects served by financial service providers.
The primary financial services include big data include banks, credit unions, credit card companies, insurance companies and Fintech companies. Big data affects the way these providers detect the most suitable products for their customers based on their usage and history and develop new products to meet evolving demands. The customers get the most appropriate products, while the financial service providers do not waste a lot of time, money, and effort to reach the required conclusions. A win-win for both!
What is Driving the Change?
The changes in the increased use of big data stem from a variety of factors. The increase in customer expectations is a critical factor. The customers’ interaction with their financial service providers is becoming more digital. Customers expect top-quality customer services, better and personalised products, and round-the-clock services, leading to companies leveraging the user data through big data technologies.
With the rapid increase in the use of Internet of Things, advanced authentication techniques, and open architecture, access to a large volume of input data is used to generate meaningful and valuable output. Many banks and Fintech companies are using big data to offer exceptional data-driven services, including online transactions, digital investment advice and banking applications. Big data provides fierce competition to financial institutions and forcing them to adopt new big data technologies.