Jason Young, the product manager for CSI NuPoint responsible for oversight of business intelligence solutions, recently said that financial institutions that are poised to leverage big data in their operations have an “immense opportunity for growth.”
Young said in the March edition of the Pennsylvania Association of Community Bankers’ Transaction publication that financial institutions able to combine existing data to track customer behavior may be able to discover “customer-centric ways of increasing profitability.”
He pointed to a 2013 Gartner survey that showed 64 percent of business respondents have already invested in big data technology or plan to do so within the next two years. According to Young, big data spending is expected to exceed $232 billion by 2016, meaning it has become a significant “mechanism for redefining the playing field.”
“Financial institutions can leverage this new technology and its advanced analytics and predictive marketing tools to capitalize on big data, craft superior customer experiences and gain the competitive edge,” Young said.
Young pointed to the emergence of automated big data solutions designed to help financial institutions sort through their large data sets to reveal greater insight regarding customer behaviors.
“Using such robust features as customizable dashboards and reporting functions, cross-application research capabilities, trend analyses and historical views, banks can gain a 360-degree view of their landscape and better predict which products, services and decisions will have the most positive effect on their bottom line,” Young said.
Young said, however, that dashboard views and extensive analyses alone will not boost profitability, adding that organizations must “implement them to their fullest potential” and use the insights gained to “derive answers and make decisions that not only drive profitability but reduce costs.”
“Big data can be your friend, or your foe,” Young said. “This year will set the tone for which institutions successfully examine their volumes of information to attract, retain and better serve customers and rise above the competition.”