Over the past week, I have reached out to many of my banking industry colleagues in the U.S. and abroad asking for examples of where 'big data' is being used effectively in retail banking. The response was underwhelming to say the least, as the majority of banking leaders provided examples of 'works in progress' or 'initial wins', with some of the most mentioned case studies being in the areas of risk and fraud prevention as opposed to marketing.
In addition to a post on big data by Aite Group's Ron Shevlin on The Financial Brand, and widely covered discussions about 'big data hype' on blogs from Gartner and CapGemini this past week, most industry leaders believe banks need to focus on data close to home before expanding their pursuit of the next shiny object. To this end, a friend from the U.K. offered to provide a guest post on the topic from his perspective as a supplier to the financial services industry.
Consumer banking behavior is changing rapidly before our eyes. Will this changing consumer behavior mean that incumbent retail banking 'zombies' may become corpses walking the halls of banking, as energizing and engaging competitors take enlightened customers away from them?
I firmly believe that many retail bankers are operating on autopilot in an increasingly dynamic and complex environment. They are trying to understand, develop, deliver and manage new solutions with buzzwords such as cloud, big data, mobile, social, NFC and mobile wallets to name a few.
I'm going to highlight one of these trending terms within the context of retail bank marketing, and the mots de jour are 'big data'.