As a leading expert in the field of (big) data solutions, we help develop the technologies that are going to shape our future. In this blog we discuss the future of financial service institutions, which will only become more data-driven as pressure on these institutions increase. Today we present a snapshot of the financial institution of the future and the data streaming technologies that power it.
A view of the future
The financial institution of the future is faster and more customer-friendly than the financial institutions of our current time. When interacting with their bank online, the customer has a seamless customer experience that is tailored to their preferences. Additionally, they are proactively approached about possible issues or opportunities. For instance, a customer might be approached about the possibility of scheduling a weekly payment when the system notices weekly manual transfers or be asked if they have made an error when exhibiting abnormal behaviour (i.e. transferring €1050 instead of €10,50). These suggestions are frequently made at relevant times while the customer is actively interacting with the system, making banking more personal, engaging and meaningful.
Customers in the future also enjoy a more open and seamless financial experience across platforms. Open banking regulations mean they can choose from a plethora of third-party applications for managing their finances in a seamless and easy manner. The financial customer of the future has no problem consenting to their data being shared for this purpose, trusting the high security and privacy standards upheld by financial organisations.
Finally, aside from offering a better banking experience for customers, the financial institution of the future is also much safer and less likely to facilitate fraud or money laundering. Banks know their customers and can instantly detect behaviours that are indicative of (future) fraudulent behaviour or that suggest an account has been compromised. When warning signs are detected, immediate action can be taken and financial crimes such as fraud and money laundering can be prevented in real-time.
Enabled by data streaming technology
The future of the financial industry described above will be enabled for a large part by (real-time) data integration, streaming data analytics and event stream processing.
- More personal customer experiences are achieved by utilising some of the over 2.5 exabytes of data that customers are generating daily. Bringing together customer data from different sources and performing analytics on this integrated source of customer data helps institutions know their customers and engage them in a more personal manner with marketing or customer relation messages.
- Real-time analytics and event-stream processing, combined with historical customer data, are at the core of enabling real-time personalised engagement with customers. They allow financial institutions to respond to customer behaviour as it is happening, enabling timely, relevant cross-selling and immediate responses to uncharacteristic behaviour. It also enables issues to be detected and resolved pro-actively before they hinder a customer’s online experience.
- Sharing customer data with certified third-parties upon request while also adhering the strict GDPR-regulations regarding data sharing and customer consent, requires a solution capable of performing a delicate balancing act. A platform like the Datastreams Platform that is dedicated both to data governance and data collaboration, allows financial institutions to build a system where financial data can be shared safely, securely and seamlessly.
- Real-time analytics and event-stream processing enable organisations to monitor ongoing transactions and immediately recognise suspicious, fraudulent patterns. This allows banks to detect fraud within seconds and shut down transactions before any damage is done. Comparing ongoing transaction data with historic transaction data also allows identification of uncharacteristic customer behaviour, potentially safeguarding customers from losing money in cases of hacked or stolen accounts.
The future is not here yet, but we’re moving towards it every day. Ready to move towards the future with us? Read more about how our Datastreams Platform can help financial institutions here.