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3 Ways Fintech Companies are Using Big Data to Beat the Banks Posted on Jun 18 - 2017

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The financial sector has become one of the biggest consumers of big data in recent years. According to Gartner, 64% of financial service companiesused big data in 2013. That figure has steadily risen over the past four years.

 One of the biggest implications is that it is making the once highly consolidated industry much more competitive. Fintech companies are able to take on big banks that are exponentially larger.

Prosper and other big data lending companies have become very reliant on big data technology in recent years. In fact, it is their entire competitive edge in an increasingly crowded market.

The biggest advantage big data provides to FinTech companies is predictive analytics. Saurabh Sharma of Indus Insights states that lenders can use data to make very astute actuarial decisions about a client’s risk profile.

 Using predictive analytics allows brands to set more accurate borrowing terms, which is financially beneficial to customers with low risk profiles. It also reduces the risk of taking on unnecessarily risky borrowers without setting appropriate terms.

Providing Better Value for Customers

Companies in all verticals are using big data to offer better customer service. The P2P lending industry is no exception.

Many customers expressed concern about companies having access to their data. However, these companies often use the data to better serve them. Accenture reports that customers have stated that they are willing to give financial institutions access to their data if it leads to better service, especially while they are seeking a mortgage or other loan. View More

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