Big data is a term that refers to the large, complex datasets that are becoming increasingly common in the business world. While traditional data analysis techniques are often unable to effectively deal with big data, new analytic tools and approaches have emerged that are specifically designed to deal with these large, complex datasets. Big data has the potential to transform the way businesses operate, providing them with unprecedented insights into their customers and operations.
In addition to the known benefits of big data and analytics outlined by the articles opening paragraph, there is also a concentration of effort in leveraging the large information pools to best understand to whom to sell and what to sell to whom.
Other big banks from around the world are also getting in on the act. Wells Fargo and BNP Paribas have both set up accelerator programmes to develop digital innovation and JPMorgan Chase is using big data analytics extensively to produce its JPMorgan Chase Institute reports, which report US consumer income and spending patterns from the billions of transactions generated across the country.
Mercator Advisory Group understands that opportunity that is also presenting as a result of access and usability of broader data sets for Financial Institutions to better engage with their existing consumers and leverage big data and to render population financial health management services.
The analytics financial services organisations apply to their own privately held data and to publicly available sources (open data) can give them insights that were previously unavailable. Understanding the output of this data to create the best actions then becomes the differentiator.
We anticipate purveyors of financial services in the future will take on the fiduciary role they are charged with improved anticipatory suggestions and recommendations based on collected financial behavioral information. By serving customers with timely and relevant suggestions, those companies will be better positions to showcase solutions as their existing customers and prospects realize they need them.
Overview by Joseph Walent, Senior Analysts, Emerging Technologies at Mercator Advisory Group
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