How Big Data Analytics is transforming the finance industry

Abstract

The data revolution happening throughout the world has brought transformation in the financial services sector. This vast information has opened doors to understanding the needs of the customers, finding insights, and lowering risks. In addition, it helps the financial services industry to take actions to improve clients' satisfaction at a faster rate than it was previously possible. Financial firms can develop new insights using BD because they can now collect a large volume of data about their customers, their spending pattern, and provide services that are beneficial, convenient, and quick for the customers. They can expand the use of those insights not only for their consumers but also for their internal process optimization, benefiting everyone in the process. While the impact of BDA on financial service companies is ubiquitous, not so many studies have been published to understand which aspects of the financial services industry could greatly benefit from the rise of technology and BDA. Few published studies address the challenges faced by banks in this technology era if they do not have BD tools implemented. This research covers data from banks from January 2019 to January 2022 to address that gap of a several banks from America and Europe that faced declining customer satisfaction. It uncovers the best methods used by financial firms globally to implement BDA to improve the services. This paper will also look at how BDA has been successfully used in the banking industry, regarding the following elements: consumer behavior, channels use, consumer spending pattern and profile creation, product cross-selling based upon user-profiling, analysis of feedback and sentiment, management of secure transactions, and fraud etc. This study helps find out and makes contributions on how the financial services industry, such as banks, could leverage BDA and provide superior services. Further research could be conducted across other players in the finance industry to learn about how they are impacted by the BDA.