Page 41 - Banking Finance November 2024

ARTICLE

don't have good credit scores and not provide loans Challenges of using Big Data in Banking
to them. While there is a lot of great benefits that come from using
Big Data, there are also some risks associated with it,
Personalized Banking solutions
Data analysts and engineers who won't conduct the
With the help of Big Data Analytics, it can help Banks proper design and analysis create inadequate data, with
in knowing customer behaviour based on the inputs a wrong analysis. It ends up with the wrong data that
received from their investment, expenditure trends,
would be used for the decisions in the business. If the
or financial background. It helps Banks to retain information is read in a wrong way, it would create a big
customers and also attract many more. loss of resources for the business and would result in
many other problems.
Optimization and streamlining of Internal
process The other risk is of Big Data being stolen for nefarious
The use of Big Data allows Banks to optimize and and fraudulent purposes. If this would happen on a large
streamline their internal processes, thereby boosting
scale for business, it means that the customer will stop
their performance and reducing internal costs. trusting the company and money would be lost as well
and this can be hard to regain in the future.
Analysis of Customer feedback
As we all know that Banks customers care are
Conclusion
clogged with many queries regularly. Big data tools
It is important for any organisation to realise that while
can help in going through high volume of data and
one can get a lot of information out of Big Data, having
respond to each of them swiftly and adequately. It
access to it is not necessarily enough to gain a competitive
will definitely increase the satisfaction level of
advantage through data science.
customers as they will feel that their feedback is
taken promptly. Based on the feedback received the
Context is just as important, as it gives meaning to what
organisation can improve their operations and the
the whole data is about. Organisation needs to know what
services that they provide to the customers according
that data means and be able to interpret it properly or
to the information that they received.
else the organisation is just going to have a bunch of data
that is not going to get any
organisation ahead of the
competition.

Financial institutions have to
leverage Big Data properly as per
their compliance requirements and
high levels of security standards,
Banks are making the best use of
the data they possess with a view
to improve on their services to
customers. With the advancement
of digital technology, data has
become critical and Banks are
working hard to embrace and
adapt to this change.

BANKING FINANCE | NOVEMBER | 2024 | 37