Big Data & Digital Marketing

There is a substantial spending on big data, with more than 75% of companies (from different industries) investing in big data in the next two years.

Each industry vertical has its own challenges and solutions. Here is a great article and infographics by simplilearn that describe for 10 verticals both main challenges and applications.

The 10 industries are:

1. Banking

2. Communication

3. Healthcare

4. Education

5. Manufacturing

6. Government

7. Insurance

8. Retail

9. Transportation

10. Energy

Big Data is a big opportunity in banking, but there are a lot of things to sort out along the way.
In the UK, banks are teaming up with retailers to offer personalised discounts to customers through their mobile applications based on an individual’s spending patterns.Banks are starting to think of their small business customers and using their data to see in real time what is happening to their businesses and where banks can step in to help.
More than a third of banks still buy data on clients from third parties, because it is too hard to extract the same data from their own systems.Most banks are held back by concerns over privacy and the technical challenges stemming from their ageing and complex systems.

How is Big Data changing the banks business? And how this can add value for customers?

Today it is imperative to use machine learning for detecting frauds and mitigating risks. The next step should be solidifying the relationship with clients, by offering what they really need, not what the bank wants to sell.

The 6 uses of Big Data in banking

1. Increase efficiency - shorten the time to get information from db

2. Reduce cost - in maintaining the data infrastructure

3. Prevent fraud - self-evident

4. Accountability - better evaluation of clients' risk

5. New revenue streams - the more you know the more you can offer

6. Client satisfaction - by offering a better customer experience

According to research by Capgemini, banks investing in analytics to understand customer attrition have a 12% lead over their competitors!

Moreover:
1. with only 37% of customers satisfied with their bank’s understanding of their needs and preferences
2. and with 40% of customers not sure whether they will stay with their bank in the 6 months time

this research indicates how customer analytics could help banks increase their revenues and gain market share.