Big data plays a vital role in increasing the revenue of the financial services industry. Thus, it drives innovation in the future. Financial organizations are found to make the best use of big data for the generation of revenue streams via data-driven offers, like personalized recommendations. It is highly effective for competing with the Fin-Tech organizations which employ a wide array of cutting edge technology for offering premium quality of services to the customers of the financial and banking services. It renders effective services to the clients.
The rise of big data
Though the majority of the financial service organizations are prone to changes, the fact is that big data may stay. Different business organizations are opting for big data for enhancing the revenue of the business. Thus, the financial sector is considered to be one of the leading drivers for growth.
FinTech organizations are capable of handling the same with the aid of big data, for providing out of the ordinary convenience. They are removing a wide array of revenue by the reduction of friction for the consumers. For instance, payment organizations let their customers pay online or seek participation in the peer to peer lending.
Thus, it can be said that the traditional financial organization does not have the prerequisite infrastructure for bestowing support to such kinds of services. Thus, they fail to understand the ways how certain consumers are making use of a certain application. They depend on different things such as surveys, in place of real-time data, for gaining an understanding of how the customers respond to the specific services.
Hence, it can be said that if the traditional financial organization is not capable of catching the FinTech organization with regards to big data, they will fail to survive.
Forward-thinking business organization wins big data
Though the traditional financial business organization is falling at present, forward-thinking organizations will be capable of making the most out of big data.
They are capable of saving an ample amount of money in the procedures. Thus, the business organization makes use of the power of data platform for winning the data. The converged data platform helps the business firm in organizing, storage, and processing of a wide assortment of data within a specific system. This helps in faster access, collaboration, and innovation of data.
Let’s take the instance of a US multinational company, offering financial services. It has above hundred million cardholders. With the aid of converged data platform which facilitates the process of machine learning, the business will be capable of conferring benefits to the business and the customers.
As they realize that the traditional database will fail to handle the huge volume of data and analytics will be required for bringing an improvement in the services as well as the management of risks, the organization is now on the multi-year mission for the incorporation of big data along with the machine learning in the business directly.
Thus, the objective of big data focuses on the management of risks. With the processing of huge data volume along with different sources on the specific data platform, they were capable of identifying the frauds that help in saving an ample amount of money every year.
TransUnion is considered to be one of the leading credit bureaus which offer information management services, credit details, and analytics to a wide array of consumers and businesses across the globe.
As they understand that the legacy platforms fail to achieve the objectives of the business of increased innovation and digital transformation, TransUnion looks forward to modernizing the data platform for offering better flexibility to the data scientists and data analysts for conferring access to the data.
With the success of the intelligence, the TransUnion are developing new lines of business for gaining insights into the market to the customers directly and bringing improvement in customer engagement. As you do so, you will gain success in taking smarter decisions as well as the development of improved risk strategies. They can also opt for peer analysis for viewing the delinquency rates.
The latest trends
Now that you have gained an understanding of what can be achieved with the aid of big data, now it is time to opt for the right plan and act on the same. To ensure that you will make the most of it, it is recommended to keep your focus on the below mentioned three steps.
Defining the data strategy and aligning the same with the goals of the business
Though a wide array of businesses struggles to drive the data, not everyone is a successful one. Short term focus is considered to be a common thread which connects different business organizations which are struggling with big data. In place of looking at big data and choosing the right strategy, they are found to opt for one-off projects.
For avoiding the same, the business organization should be making use of big data for accomplishing the goals of the business. With the development of a comprehensive strategy which spans across various departments and network of partners, they will gain success of moving forward with the big data.
Choosing a secure, scalable and flexible data platform, catering to the needs of the business
Regardless of the platform which is used by the business organization, it is a prerequisite that it should be scalable, flexible and secure. Thus, the scalable and flexible platforms let the business organization in the storage and collection of the prerequisite data, at the time of processing it in real-time.
Starting with a specific business issue and expanding the same
As mentioned above, it is possible for US multinational financial services for leveraging big data power, for bringing an improvement in the detection of frauds. As they have done it successfully, they can move to different data-driven efforts.
There is no doubt in the fact that big data contributes to being a fundamental element of the financial services industry of present. The capabilities of employing big data play a vital role in determining the success of the financial organization.