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The Rise of Big Data in Banking & Finance

over 1 year ago by Luigi Muscat Filletti
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New technology is revolutionising multiple industries, and as the collection and storage of data is greater than ever before, the banking  and finance industries in Malta are seeing a major shift from traditional to digital.

Immense amounts of company and customer information is being gathered and collected, and the processing of all this data demands professionals in Technology and Finance to innovate new software to improve operations and analyse, interpret and put into action effective financial strategies. Thus, greater Tech careers in the Financial Services in Malta are being presented as a result of technology being implemented in the everyday operations of firms in the local banking and finance industry.

With the eventual introduction of Big Data, organisations are optimising the handling of their customers’ data, enhancing sales and marketing efforts as well as obtaining valuable market data to be used in a variety of situations, all in real-time. In this blog, we will take a look at how the arrival of Big Data is affecting finance worldwide and how the banking industry in Malta must adapt to excel and generate more banking and finance employment opportunities in Malta.

Firstly, what is Big Data?

Big Data refers to the collection and processing of large volumes of data in real-time, and all information is indexed within complex data structures, allowing data to be archived and extracted in a highly organised manner. Ultimately, Big Data stores all a company’s information from sales, customer databases, marketing analytics and investment behaviour, to mention but a few, and organises them accordingly for professionals to use to their advantage in making better, well-informed decisions. Paired with cloud computing technology, Big Data feeds volumes of information to act as resources for cloud computing to operate - with Big Data acting as the content whilst cloud computing serves as the infrastructure through which it is managed.

This organised data improves accuracy automatically through Artificial Intelligence machine learning and pattern recognition whilst simultaneously granting more free time to employees to focus on more important aspects of their jobs. By reducing the risk of decisions, companies will be able to save on expenses whilst enhancing the effectiveness of their campaigns.

Companies within the Fintech sector are moving with the times and are increasingly generating efficient and intelligent online services - with customer databases rapidly growing, and with the sheer volume of data being obtained, the banking industries worldwide must adapt in order to overcome such challenges. Therefore, investing in Big Data technology becomes a priority.

Why should Finance Companies move towards Big Data?

The reality is that the growth of the internet in the last decade alone has made it incredibly easier for companies to monitor and process their data,  and now Bid Data promises to do all that and more - by providing the option to evaluate customer data in real-time, which can result in better prepared decision making in relation to customer segmentation and targeting, selective product offerings and risk management. Below, we take a look at the major advantages which Big Data offers to the Finance industry in Malta.

Increased Customer Segmentation

Big Data can help finance companies categorise their customers and clients according to their set parameters and criteria, such as financial situations and behaviours, demographics and geographics. This type of feature can help companies segment their customers far easier than before, and ultimately contribute to forming tailored marketing campaigns and enhance customer relationship management. By monitoring customer spending patterns and habits, companies can  better categorise their customers’ financial behaviour and hence target specific schemes and deals accordingly - creating personalised product and service offerings, companies can form more meaningful relationships with their customers and also be more likely to secure sales and subscriptions.

Enhanced Risk Management & Compliance

Companies in the financial services will certainly be at an advantage with regards to risk management thanks to Big Data and cloud computing, as this technology can aid analyse and detect various financial problems to prevent loss and fraud. With data being presented in real-time, firms can be quick to act on potential fraud as well as analyse customer data to manage customer risk. This will undoubtedly enhance the level of safety and security and raise the bar for financial safety across the industry. In addition, this data is also being used to monitor trading operations and transactions to recognise unusual trading patterns, as cloud analytics provides professionals in finance with the tools to prevent and report any unauthorised trade.

To conclude

Big Data and cloud computing technology is making its mark in the finance and banking industry by allowing firms to better understand their customers and set up a secure infrastructure for the organisation and implementation of their data. Once more, innovative high-tech is being applied to finance industries, and by doing so is creating greater job opportunities in technology. This technology is presently shaping the future of finance, and therefore the demand for skilled and talented individuals in IT are being recruited by top banks and finance companies to put forward Big Data and cloud technology to optimise their customer and company data.