Predictive analytics enables faster decision-making and long-term planning to determine what types of products to offer customers and when to offer them. AI, in particular, aids in driving this proactive strategy, preventing banking customer churn, and promoting best practices in retail
Fremont, CA: Data has become a highly valuable resource across industries. This is especially true in the financial services sector, where big data has created new opportunities for both customers and employees. Understanding how banking and big data work in practice necessitates familiarity with the technologies used to collect, clean, and analyze data sets gathered from various sources.
Big Data
Processing large amounts of data necessitate a significant investment in resources. Banks must install powerful servers that can run analytics software such as machine learning and artificial intelligence. Alternatively, they must invest in cloud-based software, though most financial institutions still prefer on-premise database storage for security reasons.
The financial services industry was among the first to use big data analytics in strategic planning to identify market trends and gain a competitive advantage. Predictive analytics enables faster decision-making and long-term planning to determine what types of products to offer customers and when to offer them. AI, in particular, aids in driving this proactive strategy, preventing banking customer churn, and promoting best practices in retail.
Where does all of the information used in banking come from? As financial services become more digital, data streams from payment processing services, mobile banking apps, online banking portals, and automated teller machines arrive. These sources have been accumulated over the last few decades, but the industry has failed to properly manage these pools of information to their benefit until now.
Sales and Marketing
Analytics are now driving direct marketing and sales efforts in the banking industry, demonstrating the strategies that will generate the highest returns and how consumer segmentation across categories can make cross-vertical marketing easier to manage.
Demographics can be reached more easily with campaigns tailored to their specific needs and expectations. As a result of big data, the sales funnel has been transformed by the power of analytics. Leads are now highly qualified and can be forwarded to the sales team, where additional processes can be implemented to determine which prospective customers are most likely to become long-term customers.
Data analytics can also identify cross-selling opportunities, enabling banks to better bundle services and create product packages that appeal to customers at different stages of their lives. Consumers who are about to buy a home, start a family, or invest their money can be identified and targeted with specific verbiage and visuals.
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