Big data is challenged due to tremendous volumes, variety and velocity of data. These data are generated from wide array of sources, customers, partners and regulators. Veracity is an additional dimension of big data to consider. Maintaining trust and accuracy in the data is challenging when the data is ever growing. Banks employing data governance, in their various functions, for example transactions, real-time market feeds, customer records, and social media can help them to build competitive advantage.
It would not be a great deal to define “bank” when listing performance improvement due to big data harnessing. The objectives of bank can be achieved with ease appreciating the conventional methods by improving customer-focus, enterprise risk management, and flexibility and streamline operations.
Optimize offers and cross sell:
Big data helps banks to understand their client better and for quickly assessing clients past records and authenticity of the information provided. Once bank have genuine information with them, an appropriate plan or proposal can be given to the client considering liability and safety considering recent financial crisis in account. This in turn improves customer satisfaction and customer retention. Big data is having many advantages and it also depends on the vendors providing solutions, IBM’s big data solution provides the following benefits:
- Better response rate resulting in increased revenues
- Better cross-selling and great product penetration
- Better assets/balance values and increased customer advocacy
- Lower infrastructure cost.
Contact center efficiency and problem resolution:
It helps in anticipating sales by assessing customer needs. Resolving issues before it become problems allows banks to deliver timely, concise and actionable insight to contact center agents. This can results in improved sales, improved customer satisfaction and reduced operating cost.
Payment fraud detection and investigation:
Banking firms are facing issues with frauds, crimes and security breaches with data. New technologies are coming to identify the fraudsters and they are trying to defraud the system.
To be contd..