Banks not taking advantage of Big Data Analytics
Even though most of the banks worldwide admit that big data analytics can offer a significant competitive advantage, it still remains low priority area for them. According to Capgemini “only 37% of banks have hands-on experience with live big data implementations, while the majority of banks are still focusing on pilots and experiments”. Customer data analytics can help banks to improve their customer relationships and create a deeper understanding of their need. Current surveys shows that only 37% of customers think that banks have a deep knowledge of their needs and preferences.
The major issue that prevents banks from getting an advantage of big data is organisational silos. Customer data is stored across different divisions responsible for specific functions like loan or portfolio management, as well as legacy system in many banks prevent them from integrating the data which leads to the lack of seamless single view of the customer.
Another significant issues are time taken to analyse large data sets and shortage of skilled people. Also, big data is not viewed strategically by management, rather like another IT project.
In order to take an advantage of big data banks need change their traditional IT approach and start implementing new technologies and processes, otherwise they will continue seeing a return of just 55 cents on every dollar that they spend on big data.