Big opportunity of Big Data to banks

It is understood by banks that big data means big money. Big Data provides banks with a big opportunity — and they know that unlocking the value in that data could help set them apart from the competition in the dull banking landscape in the region.

It’s why bankers in this part of the world were among the top spenders in the big data and business analytics market this year.

Obviously, big data is on the radar of leaders in the world of banking, and they’re racing to gain the capabilities to harness their data repositories.

Here are some ways banks can use big data:

# 1 | Increase personalization and convenience

Banks have access to customers’ credit card history, banking transactions, and web and social interactions. As a result, they’re usually in the know when it comes to understanding the needs and wants of the customer and their buying, spending, and repayment patterns.

Using this data, banks can expedite credit checks for faster credit and loan applications and also offer individualized products and services that suit their needs.

Big data can also help banks better cross-sell their products. Say a customer takes a loan to buy a house and is the sole breadwinner for the family, the bank could offer the right kind of insurance to cover the home loan in case of eventualities.

# 2 | Protect customers

Banks know where customers typically log into their accounts from and who they transfer money to.

They also know whether they’re in the country or not based on credit/debit card spends, and they are usually able to track how customers generally prefer to pay (or at least use their banking account).

As a result, banks can create algorithms to alert them to transactions that might be fraudulent even if they don’t ordinarily raise any red flags.

Say a customer just spent money on his credit card in Singapore and 30 minutes later, someone attempted to log into the customer’s account from Vietnam, it’s unlikely to be a valid transaction — and big data could help spot, isolate, and investigate it quickly.

# 3 | Create meaningful offers

Big data allows banks to truly understand their customers. They have some personal information about customers, and when they combine it with data about their choices, habits, and income, it helps create a better and fuller picture of the customer.

Using this, banks can create better products and solutions to support customers. In fact, advisors can use insights generated from this data to anticipate a customer’s financial goals or partner with the most popular retailers in order to create a better overall experience.

Finally, banks can cross-sell their products better if they’re able to understand customers and offer discounts and concessions that are specifically matched to their needs and interests.

Source: https://techwireasia.com/2018/12/why-big-data-is-still-a-big-opportunity-for-banks/

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