Technology is continuously advancing every minute, enabling access to various aspects in our life, including the financial aspect through fintech. Among them, big data is one that holds the most massive potentials.
Speaking of big data’s godlike contribution to fintech, it is similar to how vaccine helps prevent future diseases. However, prior to presenting its massive benefits, do you actually know what big data is?
Big data is, in short, every single data coming from our electronic devices, which discloses invaluable information about the users. Reportedly, we generate roughly 2.5 quintillion bytes of data across the globe every day and it will keep growing.
Regarding its immense amount, data surely knows well of us, in almost every single aspect of life. Thus, it is not surprising that big data will revolutionize the way fintech does at the moment.
So, in what way does it contribute to the financial world? Here are among the most vivid 3 ways big data revolutionizes fintech.
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1. Personalization
Nowadays, personalization is an integral part of an individuals’ financial system, including yours. Fintech should accommodate the right customers according to their needs, making their financial lives less taxing and more effective.
The amount of data allows banks and financial institutions, that use fintech, to accurately segment their markets. In so doing, they will be able to analyze what this type of customer needs, thus able to provision better services.
2. Fraud Avoidance
Financial fraud is among the worst nightmares in the financial world. Whether it comes directly from the financial institutions or the third party, the fear of getting trapped in a fraud has inflicted anxieties to the society.
Through big data, however, the risk can be minimum for transparency will most likely be the contributing factor. Also, the advancement of fintech enables simplistic ways of transactions, hence reducing the needs to rely on shady third party’s services.
3. Automation
Automation does not merely translate to automatic ways in money transaction. It, actually, goes beyond that in a way that human’s centuries of evolution can barely imagine.
In short, automation also helps you predict the financial risks you may encounter in the future. Through sets of collective data, it can pinpoint the possible risks that may happen in the future and opts alternatives you might choose to avoid that risk.
