Steve Edkins, CEO of FusionExperience, the business and data solutions provider, comments on today’s research by the CEBR which revealed retail banks are expected to be the biggest users of big data in the next four years, with their adoption rate forecast to be 81 per cent by 2020.
“The news that UK retail banks are expected to be the biggest users of Big Data by 2020 shows that banks are now seriously looking to improve their customer service practices. New entrants into the financial services sector, from challenger banks to established supermarket chains, have undoubtedly hastened this change in British retail banking strategy.
“Increased competition is forcing retail banks to unlock the power of their data in order to respond to consumer-driven changes in the market. Data is fast becoming the currency of financial service providers who need to understand customer behaviours and anticipate changes in the consumption of services.
“However, complex legacy systems have stopped some bigger banks from capturing and understanding their data. These banks will need to make better use of growing data sets such as correspondence, loan facility letters, contracts and the diversity of customer interactions if they want to offer bespoke consumer products that will allow them to fend off their more agile competitors.”