Did you know that 2.5 billion GB of data is generated daily and as per IDC, the world will produce a whopping 40 trillion GB of information by the year 2020? The treasure trove of information will help the finance companies around the world to evaluate and polish up their business processes, assemble reports, create effective marketing campaigns for their targeted audiences, stay in the competition,belucrative, and conform to regulatory guidelines. Then, deriving useful insights from data is not easy because information does not come in tidy packages in databases. That is the reason why you need to leverage big data and business intelligence (BI) to amass huge data volumes from numerous types and sources and process them in no time. Thereafter, the information processed is used to gain business or actionable insights.
The finance companies and banks lead the majority of the industries as far as big data is concerned. Whether it is financing corporations or Fintechs, they leverage big data and BI to reduce costs, increase revenues, and compete on a global scale.
According to an article published on https://www.huffpost.com, the American banks deal with more than one Exabyte of data stored on their computer systems and databases. Now, that is quite a figure! Here are some of the ways finance companies benefit from big data:
Sales and marketing automation
Today, you have loads of data and therefore, financial organizations can collate such information about their customers in no time. The information gives banks or finance companies a better idea of their customers’ requirements, thus letting them address those needs in a proactive way. It helps various divisions within a finance company, like sales, marketing, and IT to work in collaboration and as a single division.
For instance, instead of hard-selling financial products to customers, the financial firms can combine big data and sales-force automation tools to promote their products, customizeddepending on customer needs. It could be anything from building new properties, starting a new family, or opening a startup business. Did you know financial companies make the most of big data and BI to boost up-sell and cross-sell profits by seven percent?
Financial services firms are risk-based businesses. Therefore, all loans, consolidated debts, and investments call for meticulous analysis. Big data helps these companies provide unique insights into their transactions, systems, environments, and customers to mitigate financial risks or damages. Let us explain this point with the help of a suitable example. For instance, a finance company could assess regional climate data and match the same with the structural integrity and age of that region’s buildings. Such information will help finance companies to figure out whether they should offer insurance in the area.
The economic data of a region and historic sales can help Fintechs to assess when the real estate market is balanced to bounce back and where to provide a low rate of interest or invest in things like rebuilding.
The finance companies can evaluate the parameters that make customers miss loan payments and design strategies to overcome those factors. For example, if you want to take out a, you can ask them how transparent they are in their dealings with borrowers. You can also check whether the finance company has proper data analysis and protection measures in place to prevent frauds, both internal and external.
Enhanced customer service
A detailed evaluation of customer data lets finance companies or banks to spot and address issues in no time. Even a couple of years back, a bank’s communication with a consumer was predicted on multiple questions to make sure that the issue was aptly identified. Today, with big data and correct implementation, a finance company can determine that some problem exists and quickly get in touch with the customer the moment the issue crops up. The response time is fast and brought to the notice of the financial services companies by providing a customer service professional with all accurate and relevant data.
Big data will help Fintechs to provide outstanding customer service by assessing consumer information. They gather the data from multiple sources calls, emails, discussion forums, and social networking platforms. With in-depth and broader data evaluation, the finance companies will better understand every customer’s requirements and address the same in the right way.
Customized offers for customers
Today, no customer will bother about some generic offer or an impersonal service offering. With the advent of big data, modern consumers prefer customized offers designed keeping in mind their specific requirement. It is true for the millennial generation, who want tailored financial products or services. Fintechs or finance companies evaluate customer data, their spending habits, and social media accounts so that they can delight customers with a tailored product or service. This way, customers would realize that they wanted some service or product just like that and appreciate a finance company’s efforts.
Based on the findings of the Forrester report, only 50 percent of the customers are keen to continue with their existing level of association with the financial services companies. It is a big challenge for banks or Fintechs that depended on the loyalty factor for so many years. However, with big data, finance companies can now predict which customers are looking for mortgage, vehicle loans, credit cards, and investment products. Finance companies should use big data tools to offer tailored products, delight customers, and retain them.
Finance companies could leverage big data to measure both business and staff performance. Then, they can come up with budgets and employee objectives depending on their previous performance, efficiency, productivity, and things like that. Additionally, the banks can arrange for the proper education and training of theirstaff during off-peak business hours and keep a track of their performance and goals in real-time.
The finance companies can also exploit the performance data related to financial products, services, and features to come up with new offerings tailored according to new customer requirementsor demands in the market.
Now that you have these benefits in front of you, use big data to retain existing customers and attain potential ones through tailored financial products and services.
Kelly Wilson is an experienced and skilled Business Consultant and Financial advisor in the USA. She helps clients both personal and professional in long-term wealth building plans. During her spare time, she loves to write on Business, Finance, Marketing, Social Media. She loves to share her knowledge and Experts tips with her readers for more referrals https://libertylending.com.