Traditional banks have initiated their journey of using analytics while Fintech start-ups are currently employing data analytics and decision sciences.
Data analytics plays an important role in the banking and financial services sector. It helps in monitoring and assessing large amounts of customer data and create personalized products and services specific to individual consumers.
Sharing her thoughts on how banks and insurance companies are making use of data analytics to offer right mix of products, Jaya Vaidhyanathan, President, Bahwan CyberTek says, “Without doubt, the focus for banking industry is to provide the right product, at the right price, at the right place, and at the right time. Data is critical to achieving this and analytics has to provide those insights so that it is a win-win for both the banks and its customers. For the bank, they can achieve growth, manage risks, and increase profits. For its customers, this will mean financial inclusion, contextual experience and make it easy to engage with a bank.”
Tushar Garimalla, Chief Growth Officer, Capital Float, emphasised on how companies are collaborating for implementation and usage of data analytics for their advantage.
“Traditional banks have initiated their journey of using analytics while Fintech start-ups are currently employing data analytics and decision sciences. There is a wide gradient across companies in terms of readiness of data infrastructure and usage/implementation. This gradient is being bridged through constant collaboration between traditional companies and new age companies,” he said.
Giving examples of how Capital Float is collaborating with NBFCs, he said, “Capital Float operates India’s largest hybrid lending model, wherein large banks and NBFCS collaborate with us to co-lend on our platform. These large banks and NBFCs benefit from leveraging our data sciences and technology infrastructure, which helps them achieve unprecedented scale,” adds Garimalla.
With the steady rise of Fintechs due to their more innovative approaches in this sector, consumers nowadays feel more encouraged to trust their money with such Fintech companies over traditional financial institutions. This is why Fintech companies are also looking to assert themselves more in the market by the usage of data analytics.“Fintech companies are constantly seeking innovative ways to use data to add more value to consumers and business alike. Cognitive technologies like Artificial Intelligence (AI) are leveraging data analytics to not just identify consumers’ insights but also predict trends and prevent frauds,” adds Dharmesh Kishore of Innoviti Payment Solutions.