Big data enables the banks to boost customer experience through data-driven approaches.
FREMONT, CA: Data is considered one of the critical aspects across the industries. Data-driven trends are constantly shaping the industries. The above trend doesn’t elude banking either. As per a report, every credit card transaction made, every message sent, and every web page opened sums up to a total of 2.5 quintillion bytes of data generated daily. Further, digital banking is constantly contributing to the already massive repositories of data. Banks understand the business applications of such data sets and are moving towards big data to address the growing data and utilize them for several business purposes. Among various business aspects, customer experience is an essential aspect of banking that can be largely transformed using big data.
With several financial institutions in the market, it can be confusing for customers to choose a particular bank. Thus, the banks with have big data capabilities have immense potential to improve the banking experience for the customers. Banks can utilize big data analyses to determine the precise financial requirements of the customers and serve them accordingly. A data-driven approach will significantly enhance customer experience, thereby allowing the banks to develop long term relationships with the customers.
Banks can also use big data for targeting customers based on their spending behaviors. Big data capability assists banks with personalized marketing. For instance, financial institutions can target customers based on their behavior on social media platforms through sentiment analysis, which comprises contextual mining of customer feeds. Such insights will allow the banks to compile credit risk assessment and offer customized services and products to the customers.
Big data can also be utilized to develop an organization-wide analytics strategy that will propel a concerted shift towards data-driven practices. The above strategy will allow the banks to collect, store, and use customer data effectively for financial operations. Such a strategy will also enhance customer satisfaction and assists the banks in acquiring new customers as well. Further advancements in big data will allow the banks to optimize their customer service, which will also be complemented with a rise in operational efficiency.