in Big Data

The key to staying competitive in the financial services through Big data

1.3k Views

The key to staying competitive in the financial services through Big data

The banking and financial industry is currently going through a process of overwhelming changes. These changes range from asking advice from a robot to insurance assessment using drones. Customer’s expectations have also changed greatly. They expect a more secure hassle free transaction in less time. The bank and financial services are aware that to be able to survive in a constantly evolving scenario they need to evolve as well. They know that they need to improve their operational efficiencies, fraud detection system, risk management and customer services.

At the center of every financial activity is the financial and private data from a customer, the need to store and protect it securely and also to gain leverage from this is increasing its importance every minute. More and more consumers are sharing their financial data online with the bank, financial technology firms and sometimes with tech giants like Facebook. In a situation like this, big data, machine learning, and advanced data analytics have become the major determining force to keep the competition alive among the financial services businesses.

You need to be vigilant at all time

The financial services industry and banking is the one industry where any criminal activity can destroy the reputation of the whole. In 2016, banks in Australia were attacked by malware and hackers could access to online financial credentials of thousands of customers. Banks and financial institutions are working day in and out to avoid dangerous situations like this.

Advanced application of Machine learning framework to engage data from various sources could enable businesses to track irregular activities in real-time, which could prevent any potential security attacks or criminal activity from taking place. Taking account of data in real-time and acting upon them would be a big advantage that can put the financial institutions one step ahead of the criminals. Analysis of both operational and analytical data and converge these into a single platform will help to anticipate attacks and proactively take precaution against them.

Targeted marketing will be more effective

Meaningful Big data analytics will also provide banks and financial institution the opportunity to create targeted marketing efforts. The analysis of the data will help identify segments of the different customer base.

Financial services businesses will be able to understand their customers at a micro level and should help them to create relevant, personalized and contextual communication content through leveraging data. A brand communicates strong effective message to their targeted audience and thereby increasing the conversion rates, customer base, and lifetime value. A big data platform allows businesses to do segmentation much more quickly and efficiently than legacy tools that utilize the resource to the max.

Optimizing the customer experience and keeping the customer loyalty

The biggest challenges of this digital age are to keep the customers happy and engaging. In most of the cases, banks or financial institutions do not need to physically meet the customers, so it has become more important to keep the relationship with their loyal customers and ensure their satisfaction.

Customer satisfaction is the most important area if the businesses would want to be a step ahead of their competitors. The key focus is on personalization and customization and data from a customer will surely helping the bank to have a 360-degree view of their customers. Technological advancement has made it possible to maintain a very personalized relation with every customer, for example like the “virtual bankers” which one of the banks from Australia is planning to do.

Big data gives you a single platform for analytics that also gives the power to combine data exploration, access, integration, and storage scalability. Businesses should be able to draw effective insights from big data analytics to boost up their profit and also to stay ahead of their competitors.

Fintech

Written by Srikanth

Passionate Tech Blogger on Emerging Technologies, which brings revolutionary changes to the People life.., Interested to explore latest Gadgets, Saas Programs

How To Ensure That Your App Quality Remains Good! 1

How To Ensure That Your App Quality Remains Good!

The assumption is that ‘Internet of Things' is going to make everyday life better and easier by connecting regular products and services with people. If the businesses can handle it intelligently enough then a company's product can enable them to be engaged with the consumer by staying relevant. In a world which is getting more and more competitive, maintaining one's brand loyalty is not so easy anymore, because consumers have plenty of choices. This is why businesses are looking for creative and novel ways to restore the lost relationship with their consumer and influence buying decision in a timely manner. IoT’s effect on Strong and Weak brands Needless to say that, consumers will remain loyal to brands that meet their requirements repeatedly, regardless of the advent of new information technologies like IoT. However, in the era of IoT, weak brands will be punished and perished faster and good ones will stand forte. But the gap will be widening between branded and brand agnostic products. Digitally native vertical brand or products like Bonobos, Warby Parker or Casper are born and on the internet and became a brand by the followers on social media. Without the internet and social media, these would not have been called ‘brands'. These products or brands will be the strongest players when the IoT influenced commerce will fully unleash. On the other hand, products like replenishment goods could become less relevant due to increased automation in this connected world. In a world connected through internet consumption pattern will be more predictable in nature and the way customers purchase certain products or services will change forever. Internet of Things will drive a major portion of purchase decision from active to passive. This transition is more likely to affect frequently ordered products such as household supplies and replenishment goods. Smart Products will change the way people purchase One of the companies who are aware of this transition and quick to capitalize on this is Amazon. Amazon, the world largest online retailer has introduced Amazon Dash service which enables consumers to order consumables by the tap of a button. It is a simple Wi-Fi connected device which works as a bridge between the consumer and the supplier. This technology equips the appliance itself to place order automatically based on consumer’s usage of the machine. The full integration of a service like this is more passive and is an example of what IoT can do for commerce when it is fully developed and integrated into consumers’ lives. A consumer or a family’s subscription for an item from a retailer will be based on the previous purchase history. It is the Smart decision that businesses take will make the difference The “Internet of Things” has started to echo in the growing number of connected products and ushering the new opportunities they can represent. However, this does not make it easier to understand the actual phenomenon or its implications. The internet is simply a mechanism for transmitting data or information. What is actually changing or making the whole environment smart is the change in the nature of “things”. The expanded capacities of smart connected products and the data they gather that are dawning a new era of competition. Businesses should look beyond the technologies and rather look into the competitive transformation that is taking place. But connected products will not automatically go to rebuild the brand loyalty that is diminishing. The challenge for the businesses is to use the smart product to reconnect with consumers in the moments that matter – it is influencing customers from the moment they decide to buy a product and till they consume it if they want to attract consumer attention and increase brand value.

Brand Loyalty To Be Tested In The Internet Of Things Era