Why Big Data Analytics Is In The Big Picture in Banking Market?

Can you tell me what has been helping to change the banking market? It’s big data analytics. Experts are forecasting that between the period 2020 to 2027 the market will grow significantly. The growth is very high and substantial with the help of Big data analytics.

We are adopting technologies like the Internet of Things very fast and the need for real-time monitoring of data which is generated by the banks has made them launch something new and something enhanced.

Globally Big Data analytics have provided a drastic evaluation in the banking market. So what does this change offers to the banks and their consumers? Well, that’s the main question and the title of this article.

Using this technique, you can get an understanding of the actual segments, trends, drivers, restraints, competitive landscape, and other important factors for the banking sector.

So, now you know that Big Data Analytics is important and how it can be helpful. Let’s analyze these analytics with deeper analytics. But before that, we need to know what is big data anallytics?

What is Big Data Analytics?

Bank records are very confidential and transactions of millions and trillions occur on daily basis. With the rising population, the transactions are also rising. Using improved technology is essential for data banks to comply with the same privacy and security standards.

This is where Big Data Analytics comes into the picture. Well, some of the ground rules are now destroyed and banks have transformed the structure of financial services. With the help of the different types of models such as Data mining, artificial intelligence, and Big Data analysis banks are now coming up with innovative and less risky business ideas.

So, What Are The Scopes Of This Big Data Analytics?

Well, Big Data analytics is all about its insights, and with these insights, the banks will be able to understand the behavior, patterns, shopping trends, investment background as well as the personal and financial background of the customer.

Moreover, Big Data Analytics also helps banks understand the different trends of the market, allowing them to increase or decrease their interest rates accordingly.

Where has the data of Big Data analytics been stored?

Unlike, the paperwork, the Big Data Analytics can be stored in the electronic records of the respective banks. Well, this stored data can improve scalability, and also it can be very helpful to the environment.

Do you now understand the significance of Big Data Analytics in Banking and do you think that it is a real necessity? If banks are going to use Big Data Analytics effectively, they will have to be on top of the trends.

So, let me tell you some trends in the Banking market related to Big Data Analytics.

Surely none of us is unaware that banks operate within a highly regulated environment, so they have organized themselves well and have a good handle on monitoring all of this.

For information and to manage regulatory compliance, Credit Suisse uses big data analytics.

There are several uses of Big Data Analytics that could be helpful to the banks such as experience analysis, credit risk assessment, and customer segmentation.

Some other banks like BNY Mellon, Morgan Stanley, and Bank of America are working to build a strategy around Big Data in Banking. Not to mention that other banks are following them with great speed and great enthusiasm.

Now, let’s talk about the government. The banks and governments are both looking at Big Data Analytics in the big picture. Currently, the government is reforming its identity system to protect banks from fraudulent activities.

Danemark's largest bank, Danske Bank, implemented a modern enterprise analytics solution that reduced false positives by 60% and ultimately increased true positives by 50%. That was helpful for Danske bank.

According to the report of Commerzbank, there are some parts of Europe in which Big Data Analytics is not working properly.
Big Data analytics must require certain things, such as sustainable infrastructure, wide public cloud adoption, and deployment of 5G. Oooh! That is gonna be tough.
forecast of big data analytics in the banking market

Well, about the forecast, we sure can not see the future. But we can expect the number which can be true or around. So, Big Data Analytics is going to be in the big picture very soon and about numbers, it is gonna register a CAGR of 22.97% in just 6 years of the time period.
It’s been recorded in 2020 that the losses in the financial market were around 744 billion US dollars. The numbers will be changed soon.

Conclusion

In the end, Big Data Analytics is safer and less hectic than several banking frameworks of today’s world. But some things are needed and highly recommended for this Technology to get adopted. We will have to wait for some time and accept this. In nearer future Big Data analytics going to be a great part of our life and also it will make transactions smoother.