Predictive banking enables the banking industry to consolidate internal and external customer data that is rich and financially viable, to know their customers and build their predictive profiles.
Fremont, CA: In the modern world, data is more valuable than oil. It is driving every industry’s growth, financial institutions being one of it. The banking industry has included the traits that were once limited only to the Fintech segment, like analytics and data. Over the last few years, the emergence of big data has opened doors to enormous opportunities for the banking sector to grow. Data is considered as the most priceless asset to stabilize the overall evolving banking environment successfully.
Let us look at some key banking analytics trends for 2020:
Open Banking
Open banking is a wonderful aspect of financial services that have become popular in the banking sector. The trend of secure data sharing through APIs with third parties to facilitate new financial services has given more freedom and control to consumers in the manner they communicate with their financial service providers. Across the world, the industry is starting to realize the potential of open banking and the way it is reshaping the financial landscape by helping financial services providers improve service offerings and increase overall customer engagement.
Since more regulatory bodies are mandating the banks to allow customers to share their data securely with third parties, many technological innovations are expected to take place for open banking.
AI-Driven Predictive Banking
One of the most interesting and innovative banking trends of 2020 might be the continued movement to predictive banking. Predictive banking enables the banking industry to consolidate internal and external customer data that is rich and financially viable, to know their customers and build their predictive profiles. With the improved use of data, financial institutions can offer consumers value-driven services instead of blind selling of products.
