The Rapid Rise of Big Data and FinTech
While some financial services organizations may be resistant to change, the fact remains that big data is here to stay. On a worldwide scale, more and more companies are purchasing big data and business analytics (BDA) solutions: IDC reports that worldwide revenues for big data and business analytics will surpass $203 billion in 2020.
In the same report, it was revealed that the banking industry is one of the top five biggest drivers of this growth.
FinTech companies are handling this by using big data to offer unparalleled levels of convenience. They’re taking away a sizable chunk of traditional financial firms’ revenue by eliminating friction for customers-for example, payment companies such as PayPal and Upstart now allow customers to easily make payments online or participate in peer-to-peer lending.
By contrast, traditional financial firms lack the infrastructure to support those types of services, and are unable to understand how customers are using specific applications. They rely on things like surveys rather than real-time data to discover how customers are responding to their services.
The bottom line is that unless traditional financial firms can catch up to FinTech companies in terms of big data, they will not survive.
Forward-Thinking Companies Are Winning with Big Data
While traditional financial firms are falling behind, a few forward-thinking companies have taken steps to make the most of big data, and have saved a great deal of money in the process. Both of the companies we’ll explore in this section have harnessed the power of a converged data platform to help them win with data. A converged data platform breaks down data silos by allowing organizations to store, organize and process all their data within a system. This leads to faster innovation, collaboration and access to data.