Fintech Banking And Investment Services
Knowingly or not, we’re all constantly leaving massive data trails behind us, many of which are linked to our finances. From credit card payments to online orders to mobile bill splitting, the range of fintech applications that make our lives easier are constantly collecting data about our financial habits and behaviors. But this big data isn’t just gathering dust in silos; instead, it’s opening up new opportunities for the financial industry to create products and services that better suit the needs of their clients and advance the overall efficiency of the industry. The big data market is continuing to mature, and two of the fastest growing areas are banking and investments services, a clear indicator that fintech is more than a trend.
Big Data and Finance Evolutions
Today’s finance professionals use big data to speed up and improve insights; though too much low-quality data is a hindrance, having access to the right kind of information, and the tools to properly employ it, can positively affect financial and trading strategies. However, as much as data can advance the careers of finance professionals, it also increases the possibilities of automation, thus taking financial roles out of the hands of people and leaving them up to machines. Algorithms used to automate trading and produce profits are improving and in some instances already offer speeds and accuracies that humans can’t match.
Big data and fintech have also had a significant impact on the culture of the financial industry with a shift towards a more entrepreneurial or startup mindset occurring. Data is further providing the key to improved employee retention and support; the value of unrestricted and collaborative environments is being recognized, and with it the encouragement of innovation. Organizations are creating customer-centric ecosystems through better use of data, resulting in personalized financial products and services that foster loyalty.
Finance, Big Data, and Data Analytics
The constructive evolutions of big data and fintech are founded primarily on data analytics, a technology that is changing the way businesses in all categories are run. Data collection provides the fundamental materials, but analytics processes make it possible to draw insights from this raw material and offer meaningful results. It is, however, often easier said than done, with a range of challenges facing organizations that wish to deploy data analytics programs. Currently, finance departments most often drive analytics through businesses, but there’s still much work to be done in upskilling staff to manage analytics processes. Changing cultures to recognize the value of data analytics and encouraging different departments to implement the analytics processes and insights into strategies is a hurdle many organizations are still tackling.
Fintech, Data & Governance
But implementing data analytics strategies, and achieving staff buy-in, isn’t the end of the road. Governance issues around fintech and data are more regularly coming to the fore, and we’re likely to see these barriers increase as organizations begin frequently employing fintech and big data. Not necessarily a drawback, improved governance has the ability to better secure data, ensure privacy is correctly overseen, and safeguard consumers who tend to know less about finance and the technologies being offered by the various providers. Appropriate governance and regulation also help protect the organizations utilizing big data and fintech by effecting necessary structures, procedures, and appraisals that ensure safe and appropriate uses of new technology. All in all, the aggravation that might be caused when attempting to align with regulations and governance policies will typically be dwarfed by the security it ensures.
The potential for big data in finance is evident, the tools and strategies are continuously advancing, and governments and regulating bodies are starting to catch up. It’s certainly still a challenge for many businesses, but one that’s more regularly being undertaken and allowing quicker innovation and evolution of the financial industry as a whole.
By Jennifer Klostermann