The banking sector generates massive amounts of real-time data every second. Big Data Analytics allows the banking industry to create individualized customer profiles that help bridge the gap between bankers and their clients. Today, banks are using Big Data Analytics to understand and analyze customer spending patterns, segment customers, identify new possibilities for marketing financial products, and so much more.
Big Data allows banks to cater to individual customers based on their banking history and transactional patterns, thereby enabling them to create tailored plans and solutions for their clients. This enhances customer experience and helps banks target different products to different customers based on their demographics.
Banks make use of unique fraud detection algorithms that track and compute spending and other behavioral patterns, to identify and gauge if a client may be likely to defraud banking institutions. Retail banks, investment banks, NBFCs, private equity firms, and others have a dedicated Risk Management department that relies heavily on Big Data and other Business Intelligence tools.
Historically, banks have relied on credit rating agencies to assess a customer's creditworthiness. But this data was half-baked, because it considered only one rationale while ignoring others.
With access to new insights from Big Data Analytics, banks can take other factors into account, such as customer spending habits, the nature and volume of transactions, and so on when deciding whether to lend to a particular customer.
With legacy systems, it is extremely time-consuming and labor-intensive to ensure that all the necessary compliances are in place and dealt with appropriately. However, with BI and Big Data Analytics tools, it is extremely simple to effectively manage and track all regulatory procedures, from various taxes to keeping records with central banks.
Banks can set up robust and reliable internal control systems with the help of Big Data and AI tools to tackle issues like cyber attacks, online financial frauds, and embezzlement. They can even collaborate and share insights gained from these tools with governmental agencies to mitigate such risks.
Web Synergies helps organizations in the banking and financial services industry achieve operational efficiency, enhance productivity, efficiency and reduce operating costs while complying with regulatory norms and establishing compliance - all with the implementation of cutting-edge technology solutions.