FinTech is transforming the financial services sector with effective data management systems. A highly responsive data architecture provides a competitive advantage for FinServ companies to perform better. As Pharma uses data science to compute successful medicine combinations, FinServ uses data to forecast market trends and protect their assets.
As more FinServ enterprises harness cloud platforms like Snowflake, it is essential to understand the key factors influencing their business agility. An agile business should be able to foresee and prevent financial bottlenecks before they arrive. That’s why effective data analytics is vital to the continued growth of the FinServ industry.
Snowflake Makes Data Science Simpler
The ability to harness raw data and turn it into crucial insights dictates the dexterity of any FinServ business operation. So, why is Snowflake a top choice for FinServ companies?
Firstly, Snowflake makes data science easier by offering:
– A consolidated source of data
– Powerful computing power
– An extensive partner ecosystem.
Using Snowflake, FinServ companies can leverage data from many sources using Machine Learning algorithms and powerful automation tools for predictive data analysis.
By identifying relevant trends and patterns, financial data becomes more justifiable for effective FinServ functions. This type of data visualization accelerates financial data analytics by forecasting future outcomes to make better decisions beforehand.
Snowflake is a foundation on which enterprises can build a technology stack that improves their data architecture, thereby leading to overall operational efficiency. That’s just the beginning to a long list of advantages of using the Snowflake cloud platform.
In this post, we explore how Snowflake accelerates financial data analytics for improved customer experiences, risk mitigation and identifying new sources of revenue.
How Snowflake Accelerates Financial Data Analytics
The steady incline in the FinServ industry’s growth demands a robust framework to manage various functions, from data collection, analysis, interpretation, and continuous development.
According to a recent report by The Business Research Company, the annual sales of FinTech insurance market are estimated to cross $15.343 billion globally by the year 2023.
Among FinTech service providers, the payment processors market is estimated to hit a global annual sale over $22.163 billion by 2023.
The mobile commerce and transfers market of FinTech is expected to grow in annual sales volume to $21.955 billion by 2023.
If you want a share of the future, you must know the strategies, tools and systems that work best.
Here are 3 ways that Snowflake accelerates financial data analytics for a greater business outcome.
1. Improved Customer Experiences.
Cloud platforms allow companies a unique opportunity to centralize all their structured and unstructured data in a secure location. Thus, personalized experiences can be curated for customers availing any financial service.
Snowflake Cloud Data Platform provides enterprises a fully governed location for various forms of financial data like transactional data, clickstream, third-party data, etc. The data is made available from multiple sources and streams in a way that is easily interpreted by the end-user. Organizations benefit by gaining a 360-degree view of interactions with customers, their preferences, and behaviors.
By studying the customer data available, FinServ corporations can implement a personalized omnichannel experience for daily transactions within the market. From prioritizing high value clients to identifying qualified leads, services can be tailored to retain existing customers while running lead generation campaigns backed by real-time data. The real-time visibility enabled by Snowflake data platform fuels gratifying customer experiences that improve brand recall value.
2. Identifying New Revenue Sources
Snowflake can minimize manual tasks prevalent in legacy processes. Companies can assess and regulate access to their data through data consumer segmentation via SQL. This means that data sharing, and security is ramped up without the traditional costs, complexities and risks linked with legacy data platforms. By simplifying the data processing and sharing process, FinServ companies can add new services and products to their catalogue rather ingeniously.
When selling industry-specific resources to third-party data consumers, the revenue gains of the FinServ enterprise increase. A common example is the role FinServ plays in selling updated stock market data to traders and hedge fund investors so that they can make a more informed decision. Such standalone data products become an additional source of revenue for the FinServ enterprise.
Furthermore, the readily available data can be utilized for bilateral partnerships and products that expand the company’s footprint in the market.
3. Risk and Fraud Mitigation
Snowflake Cloud Data Platform consumes varying types of data from different streams, performing real-time analysis that solidifies the enterprise’s defense against fraud and cyber-attacks. The automated and infinitely scalable Snowflake architecture offers immense computing power at a lucrative price for FinServ companies to store large volumes of historical data. The historical data can be records of anti-fraud mechanisms, customer-generated data, machine data and cybersecurity indexes that help mitigate risks and resolve threats. Using advanced data analytics, data visualization and threat detection tools, FinServ companies can be prepared to tackle any cyber challenge that may arise.
Combining financial data analytics and voluminous data storage capacities empower industries with the ability to detect, mitigate and neutralize potential risks in advance. FinServ enterprises are assured improved data security, investigative methods, anti-fraud and risk prevention capabilities.
With a holistic view of your data architecture, you can assure that your data and your customer’s data is safe. FinServ companies will thus spend less money on cybersecurity maintenance as Snowflake cloud platform offers quality data for a solid defense against fraudulent activity and cyber threats.
To learn more about the importance of data quality and best practices, read our blog How to ensure data quality? Top Five best practices
Build Your Business Intelligence (BI) on the Snowflake Cloud
Predictive analysis, historical data, data visualization, security and reliability are among the top factors that influence business agility. By simplifying the data management and sharing process, Snowflake Cloud Data Platforms are powering the FinTech market, which is estimated to grow at a CAGR of 9.2% to cross $158 billion by 2023.
Snowflake accelerates financial data analytics and delivers crucial business intelligence for improved business agility to gain a competitive edge in a market heavily engaged in the pursuit of rapid digitalization.
If you would like to know how to build the latest technology stacks to incorporate longevity into your enterprise growth plan, talk to our experts and discover your competitive advantage.