Nowadays, big data isn’t so much big, as XXXL. Financial institutions are grappling with increased information demand in real time from both customers and regulators, while also finding optimal ways to store, organise, present and monetise the increasing data crush. But how can data be used by banks to provide a better level of service, making consumers lives easier?

Customers want insight at their fingertips

The Banker and SAP report on customer engagement in the digital age showed that of the banks surveyed, 57% can disseminate information to customers in real time – when customers exceed a certain account balance limit, for example. That doesn’t sound too bad, but consider that only 2% of banks can offer customised products in real time based on events such as a large deposit in a current account. In short, banks are still lagging behind customers’ needs and expectations.

Expectations are high, but varied

Our survey showed that this is an area where banks must tread with caution. What’s acceptable to a group of customers in one country, may look like an invasion of privacy in another, or even vary between regions. Yes, people want personalised interactions that are relevant and that add value, but they want them at the right time and place. Did you know that the French, for example, are more likely to find marketing intrusive, if it’s based on life events in social media?

Big data as the big door to new services

Using intelligent data analytics, banks can derive more than customer insight – they have a great foundation on which to build new services. Sites like www.moneysupermarket.com have turned big data into a valuable service, while http://peoplelikeu.com.au/ benchmarks user profiles and spending, so customers can see how they compare with others like them.

Banks have access to a wealth of information, and should use it to build bridges with customers, and deliver high-value new services. In addition to improving services now, predictive analytics is a valuable tool for the future. Don’t look at how the world is – look at how it will be.

The Banker/SAP report: Customer Engagement in the Digital Age