When it comes to financing companies and services, they have spent a lot of money in data warehousing technology over the last couple of years. Be it big data solutions, Spark, or for that matter Hadoop, innovative technologies provide the financial sector with many opportunities to acquire more customers, boost ROI based on big data analytics and using the data for actionable insights.
It has not become possible in a day or two. Today, an information-processing platform is offered to unload information, derive data or info, load, pull out, change, and transform volumes of information from the data warehouse or database and reduce the expenses related to the storage, and receiving the right to access data and use the same for the benefit of finance companies as well as customers.
When banks and financial services companies take an initiative to get some useful insights from people, machine, and business info, Hadoop, which is an economical computer storage platform, becomes a logical way of using or leveraging customer data, thus gaining maximum advantages out of big data technologies and exploiting big data analytics.
According to an article published on https://www.huffpost.com, the banking sector is being redefined by big data and helping to prevent frauds and security breach of bank and customer data alike. Big data helps in analyzing customers’ past transactions and spending patterns to detect any fraud or abnormal spending. If the fraud is found to have occurred, the customer is informed right away. Here are some of the ways the finance companies can leverage big data analytics for growth and improve the industry:
Improved financial models
Online lenders, financial companies, trading concerns, and banks produce loads of data daily. Then, it is not easy to manage such loads of information. However, with data handling applications, tools, or programs, banks can deal with chunks of info in no time.
The financial service companies have numerous business models, considering the gamut of services they offer to customers. All data and trends related to the same require careful consideration to build effective financial models and actionable plans for the growth and expansion of finance companies.
Greater returns
The finance companies deal with customer data daily. The information they handle is not only crucial for offering exemplary customer service but also beneficial with regard to the actionable insights derived from such data. Today, most of the financial services companies, Fintechs, online lenders, and even traditional banks are adopting big data and artificial intelligence (AI) as well as machine learning to improve services and implement improved fraud detection steps.
When financial companies have better products and ensure the security of their customers, they will gain more customers and greater profits in the days to come. If you take loans from https://libertylending.com, you will know how they rely on big data analytics to improve customer experiences.
Blockchain technology
Blockchain technology is the latest buzz now, especially when it comes to cybersecurity threats these days, data compliance steps, and things like GDPR. It has an enormous big data application because, in the blockchain network, information is stored in ledgers. The data is distributed and stored in the servers of a particular finance company.
Now, the data is distributed among numerous finance companies and platforms, thus making systems almost impenetrable against cyber thieves and hackers who want to steal data and money.
With a bigger network, the blockchain system becomes more powerful and secure. It means protecting the privacy of customer data and provides an additional layer of safety to finance companies having sensitive customer data.
Investment opportunities
A smart assessment of data will let a finance company learn about several goals in every customer’s family. When a particular customer’s kid grows and he or she is 10 years old, the finance company could recommend lucrative investment opportunities for higher education. It is beneficial for both the customer and the finance company, as it will have the consumer invest money for the purpose.
Again, when a customer is contemplating to invest in a new property, the finance company is in the best position to reap the maximum benefits out of a mortgage opportunity in the future. Moreover, Fintechs can do so by using data and understanding customer behavior.
Today, the finance sector can take the full advantage of big data technology to improve services and pave the growth path for it. There are multiple ways to deal with loads of data, which the finance sector is amassing.
Hewlett Packard, for instance, declared that they have come up with the world’s largest solo-memory PC, containing 160 terabytes of storage. Companies like SQream, on the contrary, follow an application-focused approach to make the best use of available systems with the use of an economically priced GPU. SQream cited that people with fundamental SQL training could use its system. It is a good solution for the finance sector and it is happy that the next-generation PCs will flood the market soon.
Marketing and loyalty programs
After customer profiling, segmentation with the aid of big data, the finance companies can run their promotional campaigns to retain customers and attain potential ones. New customers mean new business and growth opportunities for the financial services companies. The banks, online lenders, and Fintech companies use online and offline marketing tactics! They also use social media data to build loyalty programs for their patrons.
These strategies help in generating leads, conversions, and a huge consumer base to retain customers and delight them with loyalty points and programs, benefitting both financial companies and customers. With loyalty points and rewards from financial companies or banks, customers will continue their association with them, which is good for the finance sector.
Conclusion
The finance sector is evolving with the use of big data technologies and leveraging the same to reap the maximum rewards for growth and expansion. The catalyst is big data that is spurring the growth and success of online lenders and financial companies.
Today, all Fintechs have one thing to consider, which leveraging big data. More banks and finance companies opting for data mining, thus assuring tailored customer experiences based on their previous transactions to boost conversion rates and sales.
