Key trends in IoT and Big Data application in retail banking
As banks battle to combat the threat of new market entrants, while balancing their own requirements for regulatory and security compliance, what are the key trends driving change in the banking industry?
Customers are driving Big Data uptake in Financial Services
Customer expectation is perhaps the largest contributor to the need for banks to innovate and employ Big Data and Analytics in their organisations. Driven by expectation from other industries, such as retail or manufacturing, where such technologies are already being used to great effect, customers almost expect companies to know what their needs are, and anticipate those needs. This can result in banks and ecosystem players lagging behind and losing share if they are seen not to be making advancements in these areas.
Transparency is paramount
The need for Big Data and Analytics pertains to a wider theme of a greater need for transparency among business leaders, regulators and consumers. Since the downturn, regulation stepped up considerably, and since then, strong attitudes towards clear communication strategies around privacy and security have also continued to proliferate.
To maintain consumer trust, banks need to be seen as being open and transparent, and employing pro-customer initiatives. Business leaders and regulators also require clear insight into activities and how data is used. This theme will only perpetuate as breadth and depth of data inevitably increases.
Big Data is for everyone
Although the implementation of big data technologies is costly, and time-consuming in that new ways of working need to be established, what is clear is that its application offers a better deal everyone. All parties: banks, consumers, lenders, borrowers, payments processors, regulators are set to benefit from its widespread employment. The more information available to both sides in transactions or relationships, the better the ability to plan, save, borrow or lend safely and appropriately, and so on.