Big Data And Blockchain Technology Will Shape The Future of FinTech

Experts have been predicting the influence of big data in the financial industry for quite some time now. Devices are gathering more information about consumers than ever before, which can lead to valuable insights as to how, why, and when people rely on particular financial services. Established financial institutions have finally taken notice of the big data trend, and there is no more opportune time than now to start harnessing this power.

Also read: MoneyGram Plus Makes Money Transfers More Convenient

How Big Data Will Affect Banking Services

Improving efficiency and forging long-lasting customer relations has been a major problem for banks all over the world. Consumers are more demanding than ever, and they are looking for mobile solutions to manage their finances. Not all banks have a mobile option available right now, whereas various players in the FinTech sector are focusing on smartphone and tablet users above anything else.

Another thing plaguing established banks is how customers have a hard time getting in touch with representatives. Customer support for banking services relies on either email or phone calls in most cases, rather than person-to-person interaction. Challenger banks, which are usually much smaller than their established counterparts, put a lot more focus on these pain points, which brings even more competition to traditional institutions.

But the banks are preparing to put up a fight, as they see an ally in big data. Processing that wealth of valuable information will be a deciding factor as to who gets to shape the future of payments around the world. Collecting lots of data is not all that difficult these days, but turning that information into charts, graphics, or other resources anyone can interpret, is a different matter.

Harnessing the power of big data will help banks to bring innovation to their own offerings, as well as gain a competitive edge over their many competitors. In fact, every transaction going through the legacy system holds valuable information, yet nobody bothered to take a closer look at all of these details up until now.

Data science will help institutions and individuals wield the power of big data, although there are very few companies who can offer a comprehensive and affordable service right now. Banks may decide to develop in-house solutions to remain competitive above anything else, although it’s hard to predict the future.

Keeping in mind how the majority of mobile device owners has limited or no access to the financial ecosystem, this seems to be the area where big data will make its most significant impact. Even though a lot of people may not want to admit it, our mobile device usage leaves a footprint that is visible for everyone to see. This is an obvious example of valuable big data waiting to be explored.

Storing Big Data On A Blockchain

Properly preparing for the big data movement will require business and institutions to come up with scalable solutions for storing all of this information. Right now, the most likely candidate seems to be blockchain technology as distributed ledgers allow unprecedented levels of scalability.

Combining big data with blockchain technology will set interesting precedents in the financial world. Adding additional layers of security to data storage has been needed for quite some time, and the technology is readily available to achieve this goal. Moreover, various companies are building applications on top of distributed ledgers to bring new and exciting financial services to consumers all over the world, regardless of what device they are using.

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