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What Is Big Data Analytics and Its Benefits
Fremont, CA: Every communication users send, every credit card transaction, and website users visit generates data. All of these activities result in a total of Z2.5 quintillion bytes of data. It is the quantity of data that internet users all around the world generate daily.
However, the availability of this volume of data creates a plethora of opportunities and some problems for forward-thinking companies throughout the world. Similarly, the corporate banking industry, like other businesses, is profiting from big data.
More than half of the world's adult population now uses digital banking. As a result, financial service providers now have access to sufficient data to become more effective and optimized in their operations.
Banking is, perhaps, a perfect illustration of how technology can transform the consumer experience. Banking clients no longer had to stand in line merely to deposit their checks. So it is because clients may now effortlessly conduct financial transactions using their mobile phones. These improvements have improved the consumer experience significantly. In addition, because most financial operations now get conducted online, obtaining and recording large data is no longer a challenge for the banking industry.
Advantages of Big Data Analytics in Banking
- Improved risk management
Big data analytics can also greatly enhance risk management in banks. It's because big data may give real-time insights into company customers' actions. It can also assist banks in making better-informed judgments in the best way feasible.
The application of clever algorithms has the potential to aid in the prevention of harmful acts. Furthermore, these technologies can also assist in evaluating risk and the management of services to maximize productivity and efficiency.
- Fraud prevention
In banking, big data analytics may also aid in the reduction of fraudulent activity.
Identity fraud is the most rapidly rising kind of fraud. In 2017, there were around 16.7 million victims of identity fraud. It was a record-high number of cases, followed by the previous year's record-high number of cases.
However, big data analytics has considerably aided banks in lowering these figures. It is because using big data analytics in banking to track consumer spending habits and spot anomalous activities aids in the prevention of fraud. As a result, customers ultimately feel more protected and secure when utilizing their services.
- Identify upselling and cross-selling opportunities.
Businesses are more inclined to sell to existing customers than to recruit new consumers. It means that upselling and cross-selling might be some of the simplest ways for banks to increase their profit share. Furthermore, thanks to big data analytics in banking, discovering successful upselling and cross-selling prospects has gotten easier.