In 2025 , how much do you expect to see fintechs invest more heavily in data analytics capabilities to gain deeper customer insights , improve risk management and enhance operational efficiency ?
Keren Ben Zvi In 2025 , fintechs are likely to increase their investments in data analytics substantially . As the competition intensifies , the need to understand customer behavior and preferences will drive fintechs to harness more advanced analytics tools . Deeper customer insights will enable better personalisation of financial services , which is crucial for retention and growth . Simultaneously , improved risk management capabilities will become essential as fintechs continue to face regulatory challenges and growing customer expectations around security . Operational efficiency will be boosted by data-driven decisionmaking , enabling fintechs to streamline processes and reduce costs .
Nicolas Miachon Banks and fintechs have no shortage of data but historically haven ’ t had the systems and processes to leverage this data effectively . In the coming year , we ’ ll see them investing heavily in data analytics to turn this around . As this happens , data analytics will go from a cumbersome , manual process to a highly efficient business practice that drives new operational efficiencies organisation-wide .
With modern data warehouses in place , financial organisations will be able to take a more structured approach to deriving customer insights from their data — in a fraction of the time that has previously been required to do so . This is one area where we ’ ll continue to see some of the biggest investments in data analytics , as fintechs continue looking to new digital and AI-powered tools that will help them transform these customer insights into new products and services . In risk management , fintechs have been leveraging AI and machine learningpowered data analytics for some time now across anti-money laundering ( AML ), fraud detection , credit risk reporting and more . We expect to see these investments continue over the next year , but more so through upgrades to current data analytics systems , rather than investments in entirely new systems .
Jamie Hutton The perennial issue for financial institutions ( FIs ) is creating a unified and integrated view of their data across business units , locations and systems . Hundreds of billions of dollars a year are being invested in all affected areas from financial crime compliance and risk analysis to customer service .
Yet many FIs still have too many manual processes ; data silos ; ever increasing and compounding data and an inability to effectively integrate that data to make intelligent decisions . Overcoming these issues and creating
108 December 2024