All throughout the year banks and insurance companies are busy processing new records for new clients or doing new deals, and there is a never-ending array of forms that need to be completed. These ever increasing piles of documents mount up until the office is overrun with paper. An easy solution to manage the huge pile of paper is to convert all crucial data into digital format with the help of data entry services.
In order to reduce the time taken to process payments as well as ensure better customer service, companies in the financial industry must be able to streamline their processes. Today banks, credit unions, lenders and other financial institutions are working hard to adapt to a fully data-driven approach to grow their business and enhance their services. As customers increase, it naturally affects the services in an organization. Transformation of bank data into digital format helps to process, monitor and evaluate data including vast amounts of client data such as personal and security information. This helps to improve overall performance and profitability, thus thrusting the organization further into the growth cycle.
As the big data revolution continues, the financial sector is poised to be the next to benefit. A recent Alacer group report revealed that US banks manage over one Exabyte of data stored on their system. This is also an indicator of how much personal information financial institutions have about each of us. Big data helps banks improve their services in various ways.
- Customer service: No matter how big or small the financial organization is, the main objective is customer satisfaction. Today’s customers have high expectations about the interaction between them and the bank and their buying journey is complex and non-linear. So financial payers must understand customer preference and motivation. For a good understanding of the customers, companies need a central data hub that combines all customer interactions including basic personal data, transaction history, browsing history and so on. Big data analysis will provide customer data from many sources such as emails, telephones calls, social media, discussion forums etc. This helps to serve customers better and provide tailored services.
- Personalized offers: Providing personalized offers designed with customers’ special needs in mind is also necessary. This is mainly applicable for Millennials who want more personalized interaction with their service providers. By monitoring customer spending habits and social media accounts, a bank can target a customer with personalized offers.
- Enhanced employee experience: Employee experience is also important in a financial organization. Reliable data of employees helps to track, analyze and share employee performance metrics. Applying data analytics to employee performance helps to identify and acknowledge not only the top performers but also struggling workers. With the right tools and analytics, you can measure everything right including individual performance, team spirit, interaction between departments and thus improve the overall work culture in an organization.
- Proper risk management: Risk management is an area where banks can benefit from big data. Big data technology can improve the predictive power of risk models, provide more extensive risk coverage and generate significant cost savings by providing more automated processes and precise predictive systems with less risk of failure. Many areas in risk management can be managed using big data, including fraud management, credit management, market and commercial loans, operational risks and integrated risk management. Big data permits monitoring borrowers for key events that may indicate a likelihood of default. Factors like payment history, interactions with the banks, data supplied by major credit bureaus and even social media activities contribute to a behavioral model that could better inform a potential lender. Big data also plays a role in risk assessment of markets.
- Monitoring security and fraud activities: Monitoring customers’ purchase is essential and with big data it is easy to identify when an abnormal sending is taking place. This helps banks to freeze credit cards when they are used for unlikely purchases. Systems enabled with big data can identify fraud signals, analyze them in real time using machine learning and accurately predict illegitimate users or transactions. It also offers the ability to provide a global vision of different factors and areas related to financial risk.
- Investment advice: A clear and clever analysis will inform banks about different milestones in each customer’s family. With big data, new customers can be given good advice regarding investment plans and opportunities.
Big data offers many such advantages to the banking sector. But the banking sector has not yet taken full advantage of it. For any financial organization to optimize big data, first all data should be converted into digital format. A reliable data conversion service is an easy and affordable way to replace paper files with a digital archive and it is being used all over the world in all industries and sectors.