Data-Driven Decision Making in Finance Industry

Posted on: 12-Apr-2018 | Created By: 361DM Big Data Research Team

Finance involves huge sets of data. There are more than a dozen of routes through which financial data gets collected: Transaction Activities, Social Media activity, Server Logs, Real-Time Market Feeds, Customer Service Records, Mobile Interactions and so on. Be it Personal Finance Management or Corporate Finance Management, Data Analytics has made it more customer-friendly i.e. data-driven customer-friendly. 

 

Data-Driven Decision Making in Finance Industry

In fact, Finance Industry was one of the early birds that picked up the use of Big Data Technologies. Another fact is this, Finance sector is a forerunner in data collection; though not in the range of Facebook or Google but still somewhere close enough. The evolution of 21st century Fintech Corporations is the result of Modern Technology, of which Data Science is the Guru. 

Now, given the fact that huge amount of data is being collected from consumers of various financial services, how do these firms use Big Data Technology to improve business? That’s exactly what Data Scientists answer through their profession. They help in analyzing data to gather insights and help the top management to arrive at some important decisions that could not have been made without data analytics. Let’s explore a few interesting things that Data Experts do in the finance industry: 

1. Predictive Analytics to become more People Oriented 
Most of us don’t perceive finance industry to be a consumer oriented sector. And here’s the truth: Finance revolves around people - people’s money, their assets, their liabilities and much more. Therefore, directly or indirectly, the finance sector plays a huge role in the lives of people, the consumers. 

What’s in it for Data Experts? Nothing but decision-making through Data Analysis. The availability of data and also the technology that can analyze it, has made it possible for Data Scientist to make future predictions. Every day customers are analyzed based on their activities on various platforms i.e. on Twitter, Facebook and other social networking platforms. This in-turn help companies focus on people-oriented goals. 

2. Improve Customer Experience on a Daily Basis 
In the 21st century, business is not about selling products/services but about selling experience. Data helps Data Experts understand the current experience of consumers and take necessary data-driven decisions to improve consumer satisfaction on a daily basis. Big Data Technologies like Hadoop, R, Alteryx, etc. have made it possible to store, retrieve and analyze huge amount of data collected from millions of global consumers. 

Data Scientists, these days, know well in advance how customers will behave with certain products, which locations can sell better than the others, where to advertise to ensure there is sufficient ROI and so on. I wonder, what is left for them to know! They just can know everything they need to understand, predict, and build for their customers. 

3. Keep Thieves Away: Detect and Destroy Fraudulent Activity 
The Online World is not as secure yet. Thieves are everywhere. We’ve witnessed a great deal of occurrences where huge amount of data was stolen for dishonest gains. Just like ‘Time’, Data is money. Financial Data Analysts keep a regular track of their consumer online behavior: transactions, unlikely purchasing activities, online shopping activities, etc. to detect fraud. 

Security is a major concern when it comes to Data. Data Experts are constantly building secure modes of data storage, analysis and retention. We have seen in brief how much data can do for Finance Experts and Professionals, and for the entire Finance Industry. If you have not picked up ‘Big Data’ yet, you are leaving behind a great future, the ‘Real-Finance Future’.

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