In our previous blog post we discussed the challenges which come from the increased emphasis on the use of Big Data in fintech; challenges such as the quality of data available, whether consumers were on board and why the industry needed to start improving customer experience. This blog post discusses the opportunities which Big Data may bring to the financial technology industry.
With Big Data comes big opportunities for the fintech industry, here’s just a few ideas of areas which we think will see development in the coming years. We'd love to hear of any more opportunities which you believe exist, so please let us know about them in the comments.
Payment Processor Security
With more hackings and credit card fraud comes more security concerns. As mentioned in our earlier blog post, the collection of masses of data on customers in order to provide a better experience for them and to advertise more effectively is a concern for many consumers. However, Big Data in fintech also brings an opportunity for fintech companies to develop security so that everyone can benefit.
Big Data is at the forefront of the advancements in security analysis and is allowing firms to create better detection algorithms and payment systems to combat hackers and fraud. The ability to prevent malicious theft is increasing thanks to more information on the type of transactions individuals make, the time of day they make them, their geographical location and many other more advanced variables.
The way we shop online will also be pushed forward by Big Data in the near future. The combination of fintech, social media and eCommerce data has the potential to greatly develop where and how we buy things online in the coming years. Twitter is at the forefront of providing a new channel for online purchases, but buying from your Twitter feed is potentially just the beginning.
The data which can be gathered from Twitter’s new commerce system can teach the fintech industry more about fast payment solutions and the demands which consumers and eCommerce firms have for more payment and banking options through a wider array of technologies connected to the internet of things.
With more buying channels and a greater emphasis on customer experience in 2015, we are likely to see the fintech industry help to begin to bridge the gap between online and offline, and help to create omnichannel systems for financial institutions and customer service in general.
Fintech Customer Experience
The industry is already learning so much and developing from information collected in isolation i.e. information collected from one communication channel or technology and then usually used to improve that one channel or technology. As Big Data plays a more important role in the industry, advances will come from joining the dots and providing every customer a seamless service on every channel thanks to omnichannel support and qualitative data mixed with quantitative.
Digital channels such as live chat allow frontline personal interactions between businesses and consumers to be computed and connected to existing Big Data; connecting more data and channels allows for a better experience whether paying a bill, buying something online, getting a problem fixed by customer service or when completing a whole range of other tasks.
Live chat means that customers aren’t just treated like another sales statistics or a site visitor with a certain probability of buying calculated from the web pages that they visit. Live chat agents are able to take data which tells them which product a customer is most likely to buy or how they usually like to pay and then empathetically tailor their shopping experience.
The agent can combine what the computer is telling them and what the customer is telling them to recommend the perfect product or a quicker payment system for them; bridging the gap between offline and online. Qualitative and quantitative data used in the right way makes for a better experience for the customer and more sales for the merchant.
And the final opportunity for Big Data in fintech is better personalisation. Personalisation is a real buzzword in eCommerce and digital marketing at the moment and soon will be in the fintech industry too (this year the emergence of targeting and personalisation is the highest digital-related priority area).
In a similar way to live chat, personalisation of financial technology can allow for a better customer experience and an uptick in sales (both online and offline).
We believe that not only does Big Data offer up the opportunity of better technology, meaning faster, safer, banking and shopping, but also the opportunity for financial technology to be tailored to the user’s needs. Google and Facebook offer up content and advertising more appropriate to our wants and needs, so why shouldn’t our eCommerce stores, banks, supermarkets etc. start doing the same thing?
In the same way that we are provided product and web page recommendations based on our purchasing and search history, Big Data will allow the fintech industry to begin development of the personalisation of banking and payment options we are presented with.
Big Data will allow fintech firms to better analyse customer needs and make sure that they have access to the most appropriate payment technologies at the right time, have the viable credit card limits and have the most convenient processes for them at their disposal. As we've said, these are just a few ideas for the future direction of the industry thanks to Big Data. If you have any more ideas we'd love to hear about them in the comments below.