Big Data allows Financial institutions to get an in-depth understanding of customer behaviour, products/services that do good in the market or are the future of any sector, market trends, industry regulations and compliances, competitors in the market, and advertising channels and new upcoming advertising channels in trending globally as well as regionally. The most significant areas of application of Big Data in the financial industry are:
Increased levels of customer insight as well as customer engagement programs
With the Global digitization of financial products and services, customers are now increasingly interacting with financial institutions/brands on digital platforms. By leveraging Big Data technologies to help dissect the data derived from digital channels and media, financial institutions enhance their quality of products/services as they can gain a deeper understanding of customer pain points, preferences, as well as needs.
Improved fraud detection and prevention
The financial sector has long been the victim of fraud and cybercrime is now taking over all forms of fraud. The techniques and methods of hacks and breaches have evolved and upgraded to become increasingly complex and sophisticated. This is where Big Data comes in. Big Data Analytics and tools can help process and analyze massive datasets to identify patterns and predict fraudulent activities coming in from every corner of the world. This helps minimize financial losses to a great extent.
Improved market trading analysis
The rapidly increasing demand for quick execution of market trading in the financial sector has driven the adoption of Big Data for the very same reason. Big Data tools and analytics, the data gathered from different markets can be compiled with other structured and unstructured data to produce rich, hybrid datasets. The hybrid datasets offer a real-time, 360-degree view of the market scenario covering every small and big aspect f business like profit and loss (P&L) reporting, latest trends, trade execution, risk measurement, to name a few.
Enhanced risk management
When it comes to risk management, Big Data finds application in areas like operational risks, integrated risk management, fraud management, credit management, and market and commercial loans.
Enhanced employee engagement
Apart from all the ‘technical’ benefits, Big Data has another pivotal benefit – enhancing the employee experience. By leveraging Big Data tools and techniques correctly, companies can track, monitor, and analyze the performance metrics of their employees. This will help identify the strongest performers in the company as well as the weak or unhappy performers.
Thanks to Big Data Analytics and tools, companies in the BFSI sector are now able to deliver improved services at marginalized costs. As organizations in this industry are witnessing the first-hand experience of reaping the benefits of Big Data, more companies are joining in, thereby driving the growth of the global Big Data market in the BFSI sector.
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