Role of Data Analytics in the Fintech Industry’s Growth

By Maninder Singh Grewal, Chief Growth Officer, mPokket

Be it chatbots, internet cookies or diverse types of social media posts, all these are assisting companies in analysing consumer habits, actions and transactions to provide personalised experiences. Among financial entities, fintech firms have been at the forefront of leveraging the power of data and analytics to get ahead.

The Four Vs What is it that makes data analytics so useful for fintechs and other BFSI companies?

As per IBM data scientists, the power of big data can be encapsulated in four Vs: volume, variety, velocity and veracity.

Volume is mirrored by the mammoth mounds of consumer data generated daily. With the help of sophisticated algorithms, companies can collect, process, analyse and filter the enormous troves of data to infer meaningful insights about customer behaviour and preferences.

Variety comes in the form of millions of audios, videos, text messages, online activities, GPS data and more. Advanced analytics tools then collate this fragmented information into structured bytes via a highly organised, predetermined format that is easier to use.

Velocity refers to the exponential speed at which huge data dumps are generated and processed through advanced analytics systems, making them usable.

Veracity (or accurate facts) concerns both the availability and quality of data. In the case of big data, variety or massive mounds of information can raise doubts about the data quality, which makes the data sources seem dubious. For conventional business analytics, the data sources could be smaller in quantity and variety. As a result, organisations can have more control over such data, leading to greater veracity or accuracy.