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Big data helps bring about evolution of banking technology

Paul Newman Archive

In the financial industry, companies are actively looking for ways to improve their banking technology and offer a better customer experience. Increasingly, they're relying on big data as a means of gauging the progress of their tech initiatives. Technology can improve every aspect of banking, from accounting to record-keeping to customer service, and data can help measure its efficacy.

Banking Technology recently described this phenomenon, citing a report from the Centre for Economics and Business Research in London. The London-based economic consulting firm argued that banks have still yet to account for the myriad uses of big data and the positive effects that the technology can have on their bottom lines.

"[Current accounting methods] do not capture its importance, and the lack of awareness of data's potential hampers policy decision-making," the firm said of the big data movement. "Businesses already account for the cost of collecting, storing and analyzing data. Yet they do not adequately account for the value of data, nor for the potential from its development and use."

Forbes recently explained that banks have begun using data to understand their consumers and their use of various channels for customer communications. This movement has been steadily gaining ground, but it's still lacking in two areas.

The first is data quality. Collecting information about finance and customer service can be very beneficial, but if companies don't strive to guarantee that their data is as accurate as possible, the point is moot.

The second area of emphasis is the rigidly siloed nature of information in the financial industry. Data is being collected by HR, finance, public relations and customer service departments, to name a few, but it's not easily shared among them.

Data can play a significant role in the growth of banks and their technology. It's up to the industry to nurture that growth.