How Big Data Analytics is shaping Banking and Financial Institutions
Hey guys, in this post we are set out to discuss how big data analytics is used to shape banking and financial institutions. If you are interested to understand why big data is essential for banking and financial institutions and you are excited to design your career in this field, then this discussion would guide you to take a right decision.
Let’s begin the discussion…
Economy is a key component for the prosperity of any country. India is speedy progressing and fastest growing economy in the recent time. Honorable Prime Minister of India, Mr. Narendra Damodar Das Modi has set a vision to become USD 5 trillion economy by 2025. In line of the above said vision India has begun to take initiative to strengthen entire ecosystem to achieve USD 5 trillion economy dream. India has started to enhance and upgrade IT infrastructure to promote digital transactions, e-payments, e-commerce services, e-governance and so on.
Banking and financial institutions have complex and very large data. Thus, they need fast, reliable technology that can help in competing in the present IT age. Big data is a technology that handles very large and complex data (structured, semi-structured and unstructured) efficiently. Big Data enables banking, financial institutions, and government to extract meaningful insights from very large datasets. Big Data technology has the potential to offer many lucrative benefits to banking, financial sector, and government, including but not limited to deep insights into customer profile, improved market analysis, and the ability to detect and prevent frauds. Big data analytics offers several efficient ways to plan, design, monitor, and keep track of progress in this direction. Banking institutions are using big data analytics for modernizing their processes, products, and services. It helps to bring transparency in the services, enhance customer services, improves customer satisfaction, and enhances customer retention and so on.
NPA (non performing asset) is causing serious threat to the entire banking, and financial institutions ecosystems. Big data offers an efficient and sustainable solution in risk assessment while offering financial services such as lending loans. Big analytics discovers hidden and unseen insight in the data that helps in planning and controlling business operations in the banking sector. Some of these services are given below:
· Customer Segmentation
· Personalized Marketing
· Regulation / Laws Enforcement
· Identification of Transaction Channels
· Improvement of Products and Services
· Operation Efficiency
· Cross-selling and Up-selling
· Operations Optimization Strategies
· Fraud Detection and Prevention
· Risk Assessment
· Tracking Social Media Activities
· Risk Management and Fraud
· Customer Profiling
· Future of Banking
· Monitoring Patterns of Transactions
· Compliance of Audit, and Reporting Issues.
In nutshell, we can say that banking and financial sector has huge applications of big data analytics. Therefore, enormous jobs opportunities are generating in this area every year. Big data is one of the hot cakes in the job market. So, if you are looking for dream job, you can opt big data analytics. Big data analytics is a new, alternative, and sustainable way to shape your career in financial sector. Master’s degree (PGDM) in big data analytics can open new avenues for your vibrant career. So, those who are eager to enter in this sector should peruse master’s degree or PGDM from IIM or specialized institute in disruptive technologies.
On winding up notes, feel free to write your feedback. See you next week.