Analytics is becoming a significant game-changer in the financial industries nowadays. According to practice, the organizations of banking, financial services, and insurance (BFSI) are putting their full potential to extend their market prospects and improve the services they offer to their clients.
According to a study published by Forbes, “over 2.5 quintillion bytes of data are generated each day.” This is a massive number, and thus the significant increase in the number of consumers puts a humongous burden on the rate of services offered by these organizations.
Stakeholders are now seeking new ways not only to organize their data but also to use this data to track the behaviors of their customers. In this way, companies can use the data to provide their customers with the exact type of services needed at any given time. Big Data assets have become a key player for BFSI organizations to support them in a variety of areas that provide better customer service for such organizations and boost efficiency and profitability.
Why do BFSI organizations seek big data?
Big Data can assist BFSI organizations not only in managing their data but also in enhancing customer service. Listed below are the ways in which big data can benefit organizations:
- Customer Experience
- Operation Optimization
- Employee Engagement
Big Data helps in Enhancing Customer Experience: Customers often put high expectations on the way their banks choose to communicate. With the increasing number of customers, it has become difficult for banks and other organizations to fulfill rising customer’s demands. Big Data lets the companies get a 360-degree view of their customers. It offers necessary personal information, a history of purchases, browsing history, and other related details to help companies build customer segmentation. Big Data also helps to make strategic decisions that can bring a significant increase in marketing productivity.
Big Data Offers Operation Optimization: Big Data can help BFSI organizations improve their risk model predictive power, which is the main reason why it is gaining popularity in the banking sector. Big Data offers excellent coverage of the risk and significant cost savings. Big Data can be utilized to attain risk intelligence in Fraud and Credit Management, Market and Commercial Loans, Operational Risks, and Integrated Risk Management. Big Data helps detect fraud signals that are analyzed using machine learning and detect legitimate users or transactions in the end.
Employee Engagement is a Hidden Potential of Big Data: Big Data is not only for customers, but it also helps in tracking the success of employees. Companies can classify their top performers with the aid of Big Data, and if applied correctly, it can help companies in improving their success ratio. With the right technology, such as analytics, an organization can track, evaluate, and share: individual efficiency, team spirit, departmental engagement, and overall corporate culture. Big Data lets businesses assess their success regularly, not just annual reports based on it.
Big Data, in combination with other global developments, will help BFSI companies in achieving a more durable grip both internally and with their clients and consumers, which will allow in offering better services with fewer operating costs in real-time.