The role of the data scientist continues to grow in importance as businesses try to wean actionable information from their massive data repositories. The banking and financial industries are two sectors seeing a significant impact from the application of data science.
A variety of use-cases offer insights on how data analytics helps companies better serve their customers and ultimately compete more strongly in the marketplace. Let’s look more closely at the myriad of ways banking companies leverage data science for a competitive advantage. Use these insights if you are considering a career as a data scientist, or if your IT company hopes to serve institutions by helping them make sense of their Big Data.
Why Data Science Careers are Expanding
Detecting Banking Fraud
Data scientists are helping financial institutions detect fraud in credit card usage, accounting, insurance policies and more. These scientists use sample data to help build models to detect strange activity. Specific training is necessary to successfully analyze each type of fraudulent activity. Strong data mining skills are another essential part of being successful in this role.
Improving the Customer Experience
Customers in the banking industry generate massive amounts of data, especially with the advent of eCommerce and the ability to conduct online financial transactions. As such, companies engage data scientists to derive relevant information to better predict future behavior. This helps companies develop the banking products able to generate new business and foster customer loyalty. In short, it’s a competitive necessity.
Data analytics is also making an impact in providing customer support. In many cases, chatbots powered by machine learning algorithms leverage the information identified by data scientists to provide a superior customer service experience. The fact an AI-powered bot is actually performing the service also generates cost savings for the financial institution in question.
A Higher Level of Risk Modeling
Risk modeling remains an essential task for the success of any investment banking firm. It helps these companies set the right prices for securities, allowing for the highest profit potential. Once again, data scientists get involved in the process by performing deep data analysis on the entities being traded as securities. They typically leverage machine learning tools to help them in this process.
Ultimately, institutions make stronger decisions on risk when they are better informed through data science. Expect this to be an important competitive differentiator in the industry moving forward.
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If you need additional insights on an ever-changing technology industry, speak with the experts at The CERES Group. As one of the top IT staffing agencies in New England, we can help you reach higher levels of success. Connect with us as soon as possible and explore these current open roles.