Using Big Data in an efficient way is a crucial success factor for banks. Since banks have been sitting on a data gold mine, they have substantial capacity to turn Big Data into knowledge that can be used to unlock new revenue opportunities.
There are a few banks that have done an excellent job in putting big data into practice while the majority is still thinking about it or working on the pilot projects. Single customer view or Data Silos in the bank databases do not make things easier obviously, but this cannot be a valid excuse not to use such a valuable tool like Big Data. If banks have been looking for a risk, losing market share and being unprofitable is much bigger ones than not knowing what to do with Big Data.
Banks better see big data as an opportunity, which might be useful for:
1. Acquiring new clients,
2. Risk Management and Reducing payment and digital banking frauds,
3. Increasing revenue by offering targeted and personalized products to the customers,
4. Predicting next best actions of our clients so that give them what they need,
5. Reducing churn by making the right moves to stop our clients before they leave,
6. Increasing Client Satisfaction by improving our relationships with them,
7. Getting a full (360 degrees) view of our clients, not a single one – removing the silos!
8. Supporting our bank staff to take right decisions about client actions,
9. Improving Call Centre Efficiency,
10. Creating new Customer Segmentations to serve better the changing expectations,
11. Higher customer loyalty based on trust and confidence – that means a bigger share of wallet and greater customer lifetime value.