An Over View of Current Use of Advanced Analytics in Banking Sector

Data is the lifeblood of every banking institutions. However, the need for more complete and accurate data is greater than ever before. Stricter regulation regarding regulatory risk management pushes banks and other financial institutions to improve the quality of their data while pressuring their efficiency in handing large quantities of data. Banking Sector over the last few decade has undergone drastic changes, when it comes to the way they operate and provide efficient services. Increasing population worldwide overburden the existing banking infrastructure. This will in turn increases the number of customers, online transactions and also create huge amount of data when dealing with large segment of customers.. To tackle these challenges, banks should move away from the traditional approach and modernize their data gathering methods and internal process to ensure a complete inventory of the required customer information at all times. Banks are already realizing client profile enrichments based on internet search in their screening process. However, banks now use multiple internet sources to identify potential risks. Banks are now using advanced Analytics to handle this situation in every day. To address the above mentioned issues, this paper provide a detailed review of the role of Data and Analytics in Indian banking sector. Application of advanced analytics is a huge step towards the development of banking sector. So, applying Big Data analytics in banking sector in India would help banks in generating actionable insights to improve strategic and operational decisions, and to stay on top of business and competition, every bank must be highly rich with technology and Analytics. Big Data is definitely going to make things easier for the banking industry.