Big Data tools not only simplify lengthy analytical procedures in any industry, but they also provide a competitive advantage to banks. With new regulations, banks are looking at ways to make compliance procedures more effective and accurate. Big Data in banking is slowly gaining momentum and becoming an inevitable necessity across the banking industry. As traditional data management structures become obsolete, the community banks struggle to comply with external competitive and regulatory pressures.
The need to execute analytics tools in the community banking system is gradually becoming more of a compulsion than an option. Gartner’s 2014 CIO survey shows that financial firms encourage investing in data analytics when it comes to technology spending. While big banks have the clear advantage of understanding their customers through costly investments in data analytics, community banks appear to be a bit cautious in adopting the innovative trend. In order to implement the Big Data tools, community banks are faced with hindrances that revolve around high cost, lack of expertise and data security.
Community banks cannot always afford to implement analytics tools and infrastructure, plus hire professionals required for a new database.
In addition, data security related to private customer information is a sensitive issue for many community banks. Most thrive in local communities where there is a high level of trust between the bank and the customer. Through personal interactions and long established relationships, community banks tend to have a deeper knowledge of the credit decisions of their customers than large banks do.
With the implementation of Big Data, community banks can keep close supervision and detect any real time fraudulent acts. Through predictive analytics, the banks can identify and monitor any discrepancies in customers’ account and even forecast a loan default. The community banks would also be able to detect high-risk accounts which can help them in making more informed decisions. But the reluctance in sharing private information remains an issue to many of these banks since they flourish on trust and confidence of their customers.
This article has been extracted from https://icrunchdatanews.com, please click on this link to read the article in full https://icrunchdatanews.com/big-data-community-banks/
Montash is a multi-award winning global technology recruitment business. Specialising in permanent and contract positions across mid-senior appointments across a wide range of industry sectors and IT functions, including:
ERP Recruitment, BI & Data Recruitment, Information Security Recruitment, Enterprise Architecture & Strategy Recruitment , Energy Technology Recruitment, Demand IT and Business Engagement Recruitment, Digital and E-commerce Recruitment, Leadership Talent, Infrastructure and Service Delivery Recruitment, Project and Programme Delivery Recruitment.
Montash is headquartered in Old Street, London, in the heart of the technology hub. Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid management in permanent and contract roles.