Leveraging Big Data in the Finance Industry
Big data, which obviously has a number of interpretations, is both a business and technology imperative in today’s fast-paced world. It is providing solutions to overcome long-standing challenges within the banking and financial services industries. As a result of big data, processes and entire organizations are being transformed.
Data Leveraging Tactics
- First Create a Strategy — Understand how big data can support overall corporate strategies.
- Think Big and Measure Results — Create value with big data and wait patiently for the outcome.
- Develop Partnerships and Resources — Mine big data and establish ownership of the process.
Developing New Insights
Numerous financial services institutions are exploring new ways in the hope of developing insights about customers and markets. While the pursuit of data is nothing new in the financial services industry, the ability for companies to understand and leverage big data is producing far greater results for firms that are in-the-know. Big data is now easier to access, manage, and leverage than ever before.
Research indicates that companies that use big data are crafting competitive advantages for their organizations. A more comprehensive understanding of markets, customers, products, industry regulations, distribution channels, supply chains, and employees is gained when properly analyzing big data. Knowledge and insights allow the right skills and tools to be applied when a comprehensive understanding of customers and the marketplace is needed.
Leveraging Big Data
Insights can be used to determine, individual, customer preferences. “Event-based” marketing strategies can be formulated from large volumes of data to coordinate and personalize marketing communications across a large array of channels. Customer touch points include email, branches, ATMs, call centers, direct mail and mobile banking. Smart algorithms are engaged atop an impressive infrastructure based on analytics. Customers receive services based on their activities.
Whether companies are selling a product, service or information, ROIs have increased across the board. Conversion rates and sales have increased exponentially. Banking campaign revenues have increased, along with the success of overall marketing campaigns. Banks and financial institutions are quickly able to analyze what works, or what does not. Big data can also be used to fight fraud and reduce operational risk while complying with compliance and regulatory objectives at the same time.
In today’s world, advertising is not nearly enough to get the job done. Marketers must take the lead in figuring out how to discover, understand and leverage consumer information. No longer can a college student enter the world of marketing simply to avoid math.
Jonah Engler is a successful entrepreneur, investor, franchise owner and coffee lover who hails from New York City.