The history of big data in banking

by: Brandon Bogler

In today’s competitive world, the old ways of segmenting consumers along broad socio-demographic and class-based lines have ceased to aptly describe the modern consumer.

Underscoring this is the influence of life in the digital world. Consumers have come to expect continuous attention, connection and feedback, anytime, anywhere and on any given subject.

Big Data analytics, fortunately, is helping financial institutions (FIs) deal with these “moving targets.” By studying behavior across different areas of an individual’s life, marketers and others can better understand how to meet consumer expectations.

A recent article takes us through a brief history of data segmentation. The article highlights the ways data segmentation has evolved over the decades, and the role Big Data plays in it today.

In the 1950s, FIs’ data segmentation was pretty rudimentary. Individuals fell under the categories of either male or female, white collar or blue collar, urban or rural. This simplistic method was necessitated by a lack of technology. At the same time, it served many FIs well, particularly in smaller communities where bankers were able to supplement the data with personal knowledge and experience with their customers.

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