Data and The Future of BFSI

Banks are facing disruption due to their tarnished image since the financial crisis, interchangeable services, and competition from fintechs with innovative digital approaches. Current studies show that customers want real-time advice, analysis, and recommendations via their smartphones, similar to online giants like Amazon, Ebay, or Google. The two main reasons for loss of market share in the banking sector are not knowing enough about customers and not personalizing offers. Financial institutions need to unlock the full potential of customer data by merging siloed data and using external and internal data records together to gain powerful insights. Social media allows financial services institutions to offer personal advice, develop individually tailored offers, and improve multi-channel integration. Modern databases and data management systems are crucial for managing data across all sources and channels. Banks need to store and analyze every customer interaction to make the right decisions and create innovative mobile banking apps with features like investments in foreign currencies or precious metals, Twitter transfers, social lending, social trading, virtual currency trading, community functions, real-time transaction categorization, and open APIs connecting to other financial products.