The financial sector is going through a tremendous change notably in the big data analytics department. It is being increasingly noted that financial institutions that use big data analytics are having a more competitive advantage over others who don’t.
Big data analytics is increasingly used by financial institutions for the plethora of information they are receiving now. They use information like the customers purchasing history etc to push credit card sales and other appropriate products. The information collected by big data analytics is also secure and will help in keeping the confidential information of the customers secure.
Factors that are driving the Change
Due to the pandemic situation customers are increasingly becoming digital due to safety and convenience. They expect banks to give the same level of service that they used to give and even better. To keep up with the customers’ demand financial institutions are using big data analytics to comb through the large amount of data they are receiving and using it for making the customers a digital experience that much effective. Big data analytics is used to prevent fraud and bad debts from occurring. The role of financial institutions doesn’t stop with just providing services to their customers like online banking and investment decision; it also includes protecting the customer’s data from hackers and other cybersecurity threats. Big data along with blockchain technology helps in creating secure storage for the customer’s information.
Uses of Big Data Analytics
As mentioned above it helps in bettering the customer’s online experience, securing data, etc. Big data analytics can also be used to help financial institutions abide by the laws put forward by the government. It helps in analyzing large amounts of data to give meaningful output and also using blockchain technology helps to backtrack the audit trail of that information, hence helping in bank audits.
