Big-Data Analytics in Banking – Road Ahead

It has always been a matter of being a differentiator in the matter of banking services at least if we notice the history of banking industry. Let’s not go late in the time line, I am not here to analyze the dark ages!

Some banks in their early days used ATMs to gain early advantage, with the advent of internet some banks become the differentiator by providing internet banking services. Advantage  of being a differentiator in these cases were for very short period because as the benefits of technology started appearing other banks started getting into the race diluting the first movers advantage.

Will this be the same in case of Big Data technologies? Well I am not here to emphasize the importance of Big Data, because it’s importance and inevitable arrival is already a thoroughly discussed topic.

What I want to discuss is what will be the path and road blocks in the journey of the banks once they decided to start their journey in adopting their Big-Data technologies!

Riskiness: Given that I was born in an era, where there was no ATM and something called Internet, it is not difficult to imagine the rigorous discussions that must have happened in the board rooms of the banking company! How can you leave a box containing chunk of money alone on a road … that to unguarded! Or how can you allow somebody to enter into your system and deal with the money through internet! If I go back to the time when I started to understand what cash is, this situation is risky enough!

Regarding Big Data I doubt that there will be any such emotional discussions in the board room! On monetary perspective, bank at the most may not find expected ROI. But investment made would not be that high as compared to the ones made in the systems above.

Dilution of first mover’s advantage: An Adoption of Big Data technology is a long journey. Every day new technologies’ are coming and hence new type of data. New requirements are coming … because of that customer behavior is changing continuously, hence new aspect/type of data.

Adoption of BigData technologies can be slow and steady process because nobody knows the end rather there appears to be no end to this. So the process better be slow and steady hence cautious.

Chandrakant Maheshwari

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