Data — Fuel of the Fintech customer Journey

by: Arunkumar Krishnakumar

Twitter: @karunk

In this article, I hope to capture areas where data and analytics are being used currently in different verticals within Fintech, and touch upon possibilities that lie ahead when Fintech verticals are aligned with data capabilities.

Data is the 21st century oil. With about 90% of data existent being created in the last couple of years, organisations are at a loss if they can’t leverage data as the differentiator for their customer strategy. The real differentiator for the Fintech sector from mainstream banks has been their focus on two key themes, customer experience and democratisation of capital.

Fintech has seen exceptional growth in the last few years with exits reaching new highs in 2014, a clear trend pointing towards consolidation. This consolidation should converge in a few years, focussing on customer journeys. Say, a customer buys an expensive suit on M&S website after he moved jobs. The next time this customer moves jobs, the ecosystem stays on top of social media sites like LinkedIn, and retargets the customer when suits at his price range are on sale, uses location services to track if he is close to an M&S store, alerts him on relevant deals, and notifies him of interest free/ P2P lending/ crypto currency options to complete the transaction.

This journey needs an ecosystem that cocoons the customer within social media data, SKU level product data from vendors, location data, credit data and in some cases P2P lending options to close huge transactions — a seamless vertical integration of Fintech players. The question is, who will lead the build out of these ecosystems as Apple did it for mobiles. My guess would be banks. Banks would lie at the heart of this ecosystem and are best placed to bring the key players together. Banking as we know today is dying, but banks are’nt!!

Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this innitial abstract are invited to share and like it so that it may be featured in a longer version that will published in the FINTECH Book due to be released November 2015.