Like all other businesses, financial industries are always looking for new and innovative ways to amplify their business. And this quest can become easy with the help of data science services.
Data science services are a godsend solution that has helped the financial industry to improve its services, understand clients, boost customer acquisitions and retention, and improve its overall performance and efficiency.
Want to know how?
Then keep on reading because this article covers everything about how data science services and solutions have revolutionized the financial industry.
To begin with, let’s discuss what are data science solutions for the financial industry.
Data science services for the financial industry or fintech (financial technology) are services that help companies to gather insights and improve businesses with the help of machine learning, deep learning capabilities, and artificial intelligence.
Research conducted by Statista reveals that investment into fintech start-ups has increased exponentially over the past decade, with global investments reaching their all-time high in 2021.
And since data science is a major part of the fintech industry, its demand is increasing every day.
Now that we’ve established that the popularity and usability of data science services and solutions are reaching new horizons, let's talk about some actionable ways to use data science in the finance industry.
Below are the ten most common ways to use data science services in the financial industry:
1. Analysis of customer behavior
Helps you to identify and analyze customer’s behavior, patterns, and preferences.
2. Evaluate and manage risks
Evaluate financial risks and predict project earnings by analyzing customers’ past activity in each campaign.
3. Run efficient workflow processes
Real-time customer segmentations and automation of workflow processes accordingly.
4. Optimize sales processes
Enables businesses in the financial industry to optimize the sales process by identifying negative (or positive) customer sentiments.
5. Reduces customer churn rate
Helps businesses to identify a potential customer churn and predict a customer’s lifetime value (CLV).
6. Personalize customer experience
Offering a personalized customer experience with the help of data collected.
7. Offer new or improved products or services
8. Fraud detection
Helps in fraud detection by leveraging information about the history of payment methods and tracing any attempt to imitate a transaction or steal money.
9. Master data management
Provide unified and consistent data across all businesses, just like Data Pilot enabled National Commerce Bank (NCB) to improve data uniformity, accuracy, and coherence across all platforms by building master data.
10. Personalized marketing
Show your customers what they like to see with personalized marketing. This form of marketing runs based on data collected and interpreted through data science services.
Data science consulting in finance is a total game changer. If you are still skeptical about leveraging these services, then continue to read how the finance industry has benefitted from data science services. Your answer will turn into a definitive yes.
Wondering whether or not data science consulting for finance is beneficial enough to be opted for? Then let us tell you loud and clear that it is undoubtedly very advantageous.
Data science services offer remarkable benefits to businesses belonging to the finance industry:
1. Better customer relationships.
The best way to nurture relationships is understanding and data science solutions enable businesses to understand their customers better.
2. A competitive advantage
Even though many businesses have adopted data science services in the finance industry, there are still some who haven’t completely taken a grasp of it. So, there’s a clear chance that using data science services can give you a competitive advantage.
3. Reduced churn rate
As mentioned in the section above, data science services can help you predict a tentative customer churn. Businesses can use this information to their advantage and run re-engagement campaigns to retain customers.
4. Improved customer experience
The goal of every business is to provide a smooth and enjoyable customer experience. And data science solutions and services help companies to offer better and more personalized customer experiences with all the information they have collected through customer data.
5. Optimized investment strategies
Businesses can use data science services to understand market trends and customers’ preferences and interests.
6. Operational efficiency
Data science can help you automate mundane and repetitive tasks and streamline workflow processes; as a result, businesses can increase operational efficiency 2x times.
7. Increased ROI
All the improved customer experiences, customer segmentation, and streamlined workflow will result in an increased return on investment. This is the advantage that businesses look forward to the most.
It’s insane how leveraging a single solution like data science services can transform the finance industry.
We say this with a heavy heart, but even the best things in the world come with a challenge, and so does the use of data science services for the finance industry.
Even though data science services have become increasingly important in improving operations, there are still some problems with leveraging this service.
So, let’s discuss some of the limitations of using data science consultation for the finance industry:
These are some of the challenges faced by the finance industry when leveraging data science services and solutions. However, it’s safe to say that the advantages outweigh the limitations. Moreover, these challenges will be catered to shortly as technology is improving with every passing day.
Financial institutions can benefit a great deal by leveraging data science services. It’ll be naive (read wrong decision) of a business not to consider it an option.
Even the future outlook of data science services is quite positive, and many businesses will adopt this trend in the financial industry. So the quicker one opts for the rising technology or data science service, the more chances a company has to flourish compared to its competitors.
Written by: Rida Ali Khan