“Data is everything” is a well-established cliche and not just in the FinTech or Financial Services industry but in every possible business. But the real power lies in the ability to process raw data to produce tangible, actionable insights. What would it mean for your FinTech business to be able to process every little piece of data almost instantaneously and use it to improve customer experience and build better products faster than your competitors? That’s what data analytics does to your business.
Since the time FinTech witnessed the digital transformation, businesses efficiently utilized insights gained via data analytics reports to stop customer churn, prevent accidents, and predict and stop financial fraud and failures. Thanks to big data, FinTech has expanded its operations using modern technologies such as the Internet of Things (IoT), Blockchain, and Artificial Intelligence/ Machine Learning (AI/ML), Smart data discovery. These applications are the primary reasons for SMBs and enterprises to prefer data analytics outsourcing.
Outsourcing is a cost-efficient strategy that helps startups, SMBs, and established enterprises effectively manage everyday operations by leveraging analytics expertise and curating data with their brand. We will discuss the pros and cons of outsourcing data analytics and how your FinTech business can outsource data management services in the latter part of our article.
First, let’s take a broader look at the role of big data analytics in FinTech.
The Role of Big Data in FinTech
The FinTech industry is growing at a CAGR of 6% and is expected to reach $28529.29 billion by 2025. The increased usage of mobile devices has contributed to more & more customers using FinTech products and services of some kind or other. As these interactions and usage patterns are stored over time, users have an exponential increase in data produced every second.
This presents both challenges and opportunities for most Fintech application development businesses.
If your FinTech business lacks the ability to use this vast amount of data to cater to your customers, you are setting up for failure. On the other hand, advanced data analytics and smart data discovery capabilities can do wonders for your FinTech organizations.
According to a survey, over 66% of your consumers expect you to understand their expectations, and even more so, in the FinTech industry. In fact, 71% of FinTech users now demand more flexible journeys with multi-channel interactions.