Professionals throughout the finance industry have staked their livelihoods on their ability to gather, analyze and report on data sets in order to turn profits. The game just got a little bit harder with the addition of what we call Big Data. In the past, finance professionals often took smaller sets of data to extrapolate on trends and forecasts. Now, Big Data is making it possible to track large scale movements across nearly every industry. This is sure to lead finance companies in a new direction as they learn more about consumer behavior and develop products that more accurately reflect the needs of customers.
The move to handheld apps in the last two years specifically has taken the finance industry by storm. Investment platforms like Betterment, Wealthfront and Aspiration have made it possible for young adults who are uncomfortable with the big bank setting to get involved. These apps have also found ways to break down account information and services in a way that’s easily digestible in a small screen format, making it easier for customer to make quick decisions about their future without missing any key information. This is forcing financial companies to reconsider how they package data and how consumers interact with their products day to day.
The fact of the matter is that financial institutions of all kinds need to do a better job of marketing to new customers. A series of unfortunate events in the financial industry has led to consumer mistrust. Big data offers the opportunity to produce more targeted ads and products that can really bring customers back into the fold.
Having Big Data readily available means that many companies have started offering “smart” products to their consumers. This means using automated systems to assess risks and make moves based on big picture trends, not just local ones. We have also seen a number of advancements in automation that allow computers to comb through data, make suggestions, and learn from mistakes in real time. The idea of waiting thirty days, or a quarter, or even a full year to see the results of a financial decision could become foreign as many consumers grow accustomed to trusting automated systems that give immediate feedback.
These are just a few of the ways that big data is already impacting the financial sector and pushing companies to take on new challenges. The result will likely be a more trustworthy, transparent finance industry that uses real time data to deliver astounding results.
Learn more about how your financial institution can benefit from big data analysis with software from Merge IT. Contact us today to schedule your consultation with our software experts.