Data is a fact of life in today’s competitive financial marketplace. Financial institutions are exploring new methods to integrate data analytics into their ecosystem. let’s look at how data analytics will transform the finance industry in the near future. As per the recent study, there was a 12% revenue increase over last year for big data and business analytics solutions. The growth will not slow down for at least the next five years. Data analytics for the finance industry will be a boon as it solves problems and creates an additional revenue stream.
Improves customer service – Earlier, the finance organizations gathered surveys, purchase history, demographics, and personal behavior, but now data gives the personalized services that improve customer management. For example, recommending the next product to customers as per their buying habits and calculations. Robo-advisers and chatbots are deployed to gain insightful tips and shorten customer replying-time.
Implements process automation – Machine Learning has made algorithmic trading process automation easy. With this higher level of service, most customers will respond to a higher volume of transactions. Data analysis can improve credit risk and pour in more information about the customer’s age, location, history, and financial needs.
International payments- International money transfers are slow and are costly and error-prone. But, with the implementation of blockchain technology, customers are able to send money globally within 24 hours. this huge financial activity needs big data analytics which will result in no human error and fraud making slow. Blockchains networks are verified and hence, the data cannot be forged and the transaction speed and cost are overwhelmingly reduced.
The finance industry has always lead the technology. Looking at the use of data, today organizations are demanding data analysts who can create data modeling and use data mining techniques to improve the organization’s growth.