The Center for Financial Services Innovation (CFSI) has released a new report outlining ways big data can help financial services providers better serve their customers. The report, Big Data, Big Potential: Harnessing Data for the Underserved Market, identified four keys to using big data/analytics in a way CFIS says can benefit companies while improving the financial lives of individuals:
- Designing Data Mosaics for Personalized Outcomes: Overlaying vast data sets from public records, online habits, payment histories and more can yield granular, tailored solutions that reduce provider risk and better fit consumer needs.
- Communicating Data Elements Clearly: Big data can best help consumers manage their financial lives—and demonstrate their value to providers—when they can connect the dots between data used to evaluate them and financial outcomes, are empowered to report errors and are well-informed about ways to improve their financial standing.
- Trading Private Information for Better Value: When consumers voluntarily share private information, providers gain more current, reliable data, and customers who open their books can turn that information into an asset to garner stronger insights, more attractive offers or lower rates.
- Strengthening Models through Market Adoption: Big data’s potential to impact consumers and hone compelling models depends on the strength of its adoption. Innovators are reaching target populations efficiently by partnering with established financial institutions, or by collaborating with related industries, such as telecom providers and credit bureaus.
“Employed responsibly, big data has the ability to enhance provider capabilities, lead to better products and services, and ultimately increase consumer financial health,” said Jennifer Tescher, president and CEO, CFSI.
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