What is big data analytics in banking?
Big data analytics is the utilization of progressed expository methods against exceptionally huge, assorted huge information sets that incorporate organized, semi-structured, and unstructured information, from distinctive sources, and in numerous sizes from terabytes to zettabytes.
Banks and financial organization analytics to oversee the chance related to the credits they make. This is often done by checking the information they collect on individual customers. This information can incorporate, but isn't constrained to: Client credit score. Big data analytics is useful to determine market patterns and market trends which is helpful for business decisions. This data is also important for understanding customer patterns to promote marketing strategy in banking.
Market Drivers of Big Data Analytics Market
Increasing use for Fraud detection –
Fraud detection and management is the foremost prevalent application of big information analytics within the managing an account industry. It makes a difference to distinguish fraud or recognize fraudulent exchanges that have happened prior and makes a difference in banks not repeating their mistakes. Huge information analytics gives a blend of organized and unstructured data on a high volume. Increasing Money laundering, accounting fraud, and payment c and fraud drive the growth of a market.
Help to know the customer behaviors –
Data analytics has helped banks and financial institutions know about customers and their buying habits and behavior, which is driving market growth. The firm knows what customer likes and dislikes hence it has a competitive advantage for the companies to understand the buying pattern of consumer.
Digitalization of the banking sector –
Digitalization of the banking sector is additionally moving the development of the market. As innovation progresses, the number of devices is additionally expanding in utilization by buyers expanding the number of transactions that in turn is driving the growth of a market.
Market Restraints-
Legacy systems are having trouble keeping up –
Old computer systems used in banks are something we cannot pretend do not exist. Old computer systems can't handle lots of information very well, so they get in the way when trying to work with big amounts of data. They cannot handle the increasing amount of work they have to do. If we use old technology to gather, save, and study a lot of information we need, it might cause the system to crash. It is difficult to store a lot of information in old computer systems because they don't work well with newer systems like Hadoop. It is hampering the growth of a market
Security and Privacy –
Whereas huge information comes with tremendous potential, it too raises red flags concerning security and privacy. There's the challenge of safely collecting, keeping, and analyzing information and making security arrangements. It is hindering the growth of a market.
Conclusion –
The increasing issue of fraud and money laundering in banking and financial organization is the main factor influencing the growth of the market of big data analytics. It is useful to know the consumer’s buying patterns and is also driving the growth of the market.
Author's Detail
Supriya R Ghadge, LinkedIn
I am working as a Senior Research Analyst, mainly involved in conducting market research in the Information and Communication, and Technology domain. Skilled in Secondary Research, Primary Research, Data Analytics Research approaches with extensive experience providing first-class results. Highly focused, have analytical skills, and synergetic with positive energizers. Meets job demands and deadlines through diligent work-ethic and dedication to quality. Works with clients to determine requirements and provide excellent service.
Author's Detail:
Supriya Jagtap /
LinkedIn
I am working as a Senior Research Analyst, mainly involved in conducting market research in the Information and Communication, and Technology domain. Skilled in Secondary Research, Primary Research, Data Analytics Research approaches with extensive experience providing first-class results. Highly focused, have analytical skills, and synergetic with positive energizers. Meets job demands and deadlines through diligent work-ethic and dedication to quality. Works with clients to determine requirements and provide excellent service.
