Financial institutions store an unbelievable amount of data. Big data has a lot to offer your business strategy. The solution to detecting fraud and correcting security woes probably exists within information you’re maintaining. Card portfolio management decisions can be improved by examining existing card member data. The possibilities for finding helpful information in existing data are nearly endless.
In a recent survey, 50 executives representing Fortune 1000 companies, such as Bank of America, American Express and Wells Fargo responded about big data’s place in their company’s future business decisions. 85% of the participating companies have big data initiatives underway. The most common reason to utilize big data was its ability to assist in “better, fact-based decision making.”
In the past, banks and credit unions were very conservative with their customers’ and members’ data. Privacy and security are major components of being successful, so that’s understandable. You can still protect this information without ignoring it.
As a financial institution, you have an advantage in consumer data. People trust you with their most intimate financial information. A Javelin Strategy & Research study showed that 38% of consumers are comfortable or very comfortable with letting their bank or credit union track/analyze their transactions in order to provide better service. Only 10% of consumers said they were comfortable permitting third parties, merchants or billers to monitor them the same way.
Employing big data analytics on consumer data aimed to protect against fraud doesn’t tear down consumer trust. This process often builds and fosters a consumers trust in your institution.
You’re probably sitting on the most actionable information available in the world of big data. Are there programs that might solve consumer issues and increase personal financial activity? Will an analysis of payment behavior reveal that more customers miss payments at the end of the month and would benefit from a mid-month payment schedule? Do people spend more with the promise of a reward?
By privately analyzing this data to streamline services, make your business more profitable and protect consumers from fraud, besides being a more successful business you will build customer loyalty.