Data makes up a big chunk of today’s financial sector – but we already knew that… From increasing cyber security to retaining customer loyalty in a constantly changing socioeconomic environment.
Since we are all connected through social media and browsing patterns (mmmm cookies), it is extremely easy for enterprises to monitor and adapt to different spending cycles used by your everyday consumer. The financial sector is no different, as they have a vast amount of information of where, when and how people are spending and also earning money. As George Alex Popescu, founder and editor in Chief of Lending Times, puts it “…a lot of banks are partnering, building or buying systems to allows them to take credit decisions on loans within 5 minutes. They are doing this using Big Data. They have to do this because of the competition from the alternative lending space”.
So where are we heading??
As I mentioned in my previous article PSD2 is coming, and those alternative companies that George mentioned, will have low hanging fruit from traditional banks that are not keeping up with the times and not capitalizing on the sheer amount of data that they have at their disposal (properly).
The intriguing part… My colleague Mike and I were having some water-cooler banter, and he mentioned a very interesting concept that Apple is considering to integrate and build on top of their Apple Pay system. Imagine if Apple had a bank; with their behemoth global market share, almost unlimited investment power and the technology to boot, they could become the next driving force in a truly global, real time banking system.
“Apple has a better grasp on user experience and customer engagement than most businesses – not just banks” –The Financial Brand
It would work through a number of connections, gaining information from FinTechs, challenger banks and also third party advisers to create a possible eco-system. This would really give banks a run for their money!
What to do, what to do?
Banks need to cooperate now more than ever and adapt to such rapid changes in their hectic markets. Let’s face it: if/when Apples makes a banking system, it will be scary times for the banking industry on a global scale.
The main questions banks have to ask themselves when it comes to digitization and keep up with trends are:
How to deal with thousands staff cuts due to disruption?
What to consider as innovative within the current trends?
How to utilize big data in the most efficient and valuable way?
The disruption is here, time to get with the times, integrate and join forces with fresh ideas and mentalities.
To learn more about big data, FinTech – Bank cooperation, check out our Phoenix Conference in Prague this September.