Oxford defines big data technologies as:
Top 7 Advantages of Big Data Technologies in the Financial Sector
Here are seven different ways that big data technologies benefit the financial sector:
1. Facilitates Product Diversity and Development
2. Enhanced Market Analytics
3. Superior Security
Within the financial industry, there are services which are more susceptible to security failures and fraud.
4. Fewer Manual Processes
5. Reduces Costs
As we mentioned above, big data is a great way to cut down on business expenses. It allows financial companies to eliminate inefficiencies and idle work hours and to improve the accuracy and speed of decision making.
6. Customer-Centric Perks
As previously stated through big data mining, financial companies can learn all their customer’s spending habits. This information permits sales agents to offer personalised recommendations to clients and to upsell services with suggestions that fit the customer’s past patterns and behaviour. Additionally, companies can create customised services that provide additional value to customers by better meeting their clients needs.
7. Accurate Risk Analysis
Big data applications are an excellent tool for these businesses to analyse the potential risk of the situations from above. For example, when receiving loan applications banks and lenders traditionally relied on very few factors like a credit score to determine if that person was credible enough to get their loan approved. But with the help of big data technologies, datasets have been diversified and expanded to offer faster and more accurate risk assessments.