Making Data Work for the BFSI Sector
Patrick McFadinDeveloper Relations
In today’s data-driven economy, the Banking, Financial services and Insurance (BFSI) sector has already started embracing data-driven applications and implementing cohesive data strategies to avoid falling behind.
Since the industry is so heavily regulated, dealing with any volume of data is even more of a challenge. The constant threat of cyberattacks, the need to streamline customer record collection processes while maintaining data quality, and the urgent need to comply with security standards and regulations, are all factors pushing the BFSI sector to make smart decisions and develop effective solutions using a distributed cloud database designed for hybrid cloud.
Despite the challenges, BFSI enterprises are still pressing forward by building more efficient and scalable infrastructures driven by distributed cloud computing and easily scalable databases.
Why the Push for Distributed Databases?
Many BFSI organizations are still operating on legacy systems that are making it increasingly difficult to handle large volumes of data efficiently. COBOL is still alive and well. Using outdated legacy systems means many organizations aren’t able to access customer records and transaction data at the lightning speed required to keep up with modern times, or, more importantly, with competitors.
As customers become more demanding in the Right-Now Economy and BFSI organizations are expected to deliver comprehensive reports about their customer database for marketing and other initiatives, organizations have no choice but to implement a more efficient and scalable solution that will meet their short-term and long-term needs. It’s do or die.
Using Distributed Databases in the BFSI Sector
Here are some ways the BFSI sector is making data work for transformation:
Meeting Compliance Requirements
Financial services firms are heavily regulated and often have to take extra steps to meet compliance and regulatory requirements. Working with an infrastructure that leverages large volumes of fast data can make this entire process much easier. Companies can accurately monitor activities and transactions, keep records of all trades and transactions, and recognize trends and patterns in the data they collect.
Accurate Customer Analysis
In the BFSI sector, understanding the customer is essential for driving growth and maintaining a solid and loyal customer base. Using a distributed cloud database to manage customer segmentation and collect data to identify patterns can help companies discover untapped marketing opportunities. A distributed cloud database also enables the development of more effective targeted marketing campaigns and collecting of data for personalized marketing initiatives and amazing customer experiences build on powerful applications.
Fraud Detection and Prevention
Security and fraud prevention are a high priority within the BFSI sector, and every organization has different processes in place to mitigate cybersecurity breaches and fraudulent transaction activities. H
owever, being able to forecast fraudulent activity or blocking questionable transactions immediately isn’t entirely possible with legacy systems. Organizations using the right database can create hypotheses and identifiers of fraudulent activity to ward off many security threats, and analyzing complex data relationship via a graph database can reveal out-of-the ordinary activity that acts as a red flag before any damage is done.
Implementing systems driven by a distributed cloud database gives BFSI organizations a distinct competitive advantage. Handling complex volumes of data at scale is a challenge for financial services companies because there is such a high risk of fraud, data loss, data breaches, and inaccurate reporting. Developing fast-scaling distributed applications that adapt in real time is a critical need in the BFSI sector, and it all works with a purpose-built distributed cloud database. Learn more!