Guest Analysis: How the Banking and Transaction Industry Can Take Advantage of Big Data
Gil Allouche
September 3, 2014 – Like so many industries, banking has been heavily impacted by the Internet and the development of mobile apps. It’s not what it used to be. No longer do individuals have to go to their local branch to bank. Almost everything can be done online through direct deposit, mobile deposit, money transfers and online bill pay.
It’s a season of immense transition and change for every facet of the industry. Fortunately, with a big data platform, banks can find ways to survive the transition and improve the quality and quantity of services offered to consumers.
Here are six ways the banking industry can leverage the power of big data.
1. Mobile Apps
More people are on mobile than ever before, and the distinction between desktop/laptop and mobile devices is becoming harder and harder to define each day. Not only that, but nearly as many people use mobile to access online content as desktop or laptop users. The growth is tremendous and will continue into the future.
If banks want to successfully reach their customers, they need powerful apps that give consumers what they need and want to manage their account on the go. Additionally, mobile apps are great tools for big data analytics. So, not only can banks use big data to develop better apps, but they can analyze app use with big data too.
2. Online Banking Service
Big data is vital in gathering data on how customers use online banking and what banks can do to improve their online banking services. For example, just as telcos use consumer behavior data to predict which customers are in danger of leaving or which customers are likely to want an upgrade, banks can also use customer data to improve retention rates and better promote add-on services.
3. Marketing
The popular Zions Bank slogan is, “We haven’t forgotten who keeps us in business.” And that’s so true. Its the individuals who save money and take out loans from banks that keep them in business.
For them to keep up with the changes, they have to market, market and market some more. Big data has many uses, but a particularly strong point is how it can dramatically improve marketing success while still reducing costs. Through big data’s real-time analytics and social media, mobile app and internet monitoring, companies can develop extremely accurate and successful marketing campaigns.
4. Fraud and Theft
One of bankings’ most difficult obstacles is debit card/credit card theft and ID fraud. These problems cost banks millions and millions of dollars each year and with how much is done online, the concerns seem to grow by the day. Through the powers of big data’s predictive analysis and real-time analytics banks can become much more effective in not only combating this crime, but in preventing it in the first place.
One action to improve security is by creating smarter credit cards. Security numbers on the back have helped as have chips and other devices installed to ensure safety. However, there’s still plenty of room for improvement. As banks improve card technology, security and monitoring they can significantly decrease money and resources spent on fraud and theft and use those resources to provide better products and services to the consumer.
Big data tools are revolutionizing the banking industry. Banks are offering better services to more people than ever before and consumers have more options than ever before. They can truly get a personalized experience.
Gil Allouche is the Vice President of Marketing at Qubole. Gil began his marketing career as a product strategist at SAP while earning his MBA at Babson College and is a former software engineer.
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