Many might think that the term, Big Data, is overhyped. But in layman terms, it is just large volumes of structured or unstructured data, gathered by a business on a day to day basis, from a variety of sources – external and internal, analyzed to derive actionable insights that lead the management to take important strategic decisions. Since time immemorial, organizations have leveraged historical data for analysis purposes, but there’s a certain freshness that big data analytics brings to the table. It helps unlock potential avenues to help organizations achieve their objectives, improve performance and drive innovation.
On the other hand, retail banking or consumer banking as it is popularly known, is the provision of services by a bank to individual consumers instead of corporate giants. Banking organizations aim at becoming a one stop shop for a wide array of financial services such as debit/credit cards, loans and deposits, etc. for individual clients. Banks continuously strive to add value to their product offerings in order to provide a 360-degree banking experience to their customers.
And how will big data help retail banking organizations achieve their goals and objectives, you ask?
The retail banking industry is at a stage where, post the credit and financial crisis, it must integrate analytics and big data in order to devise marketing strategies that will help the industry grow. This will enable the retail banking firms to not only achieve their objectives but also create a positive customer experience, reduce customer attrition levels and create a sustainable competitive advantage.
Big Data – Creditworthy much?
Retail banking firms can leverage big data analytics and customer analytics to improve the efficacy and profitability of their interactions with the customer. These insights can be used to ascertain which mediums consumers use to interact with banks and what drives the purchase of certain services. Data such as transaction records, mobile banking and website traffic can be utilized for analytic purposes and derive deep meaningful and actionable insights about an individual, as retail banks have access to transaction level data of customers. Additionally, retail banking companies can make use of pricing analytics to identify feasible pricing options, pacts and incentives to which customers respond in a favorable manner. They can use analytics and big data solutions to drive and improve their ROI, make leading-edge data and insights actionable.
Should retail banking firms, debit or credit ‘big data’ in their balance sheet, you ask?
Credit it, we say.
How SpendEdge Will Help Increase Your Credit Score
There is a constant need for innovation in terms of customer engagement in the BFSI industry, which also means increased operational costs and reduced profit margins. At SpendEdge, our team of experts have a deep understanding of the key challenges faced by procurement function in the BFSI sector and bring to you detailed solutions that focus on providing necessary insights to achieve procurement excellence beyond just cost savings.
For a better understanding on use of big data analytics and data analytics tools for retail banking or consumer banking