CHICAGO--(BUSINESS WIRE)--Today, the Center for Financial Services Innovation (CFSI), released Big Data, Big Potential: Harnessing Data for the Underserved Market. The report, which benefitted from strategic support and financial input from Morgan Stanley, focuses on applications of big data in financial services and the positive implications it can have on the financial lives of consumers.
“Employed responsibly, Big Data has the ability to enhance provider capabilities, lead to better products and services, and ultimately increase consumer financial health,” said Jennifer Tescher, President and CEO of CFSI.
This report takes a close look at current developments in Big Data analytics, drawing on illustrative examples from 45 companies and four case studies that address the evolving needs of underserved consumers for credit, financial management, and other services.
"Big Data holds great promise in expanding access for the financially underserved to a broad range of solutions and capabilities that can positively impact financial health,” said Audrey Choi, CEO of Morgan Stanley’s Institute for Sustainable Investing. “We are pleased to partner with and support CFSI on their important research that charts the way forward for innovative providers working to harness data technology for the financially underserved market, both effectively and responsibly.”
The following four key trends in Big Data hold potential to mutually benefit individuals and companies by supporting consumer financial health and scalable, disruptive analytics for financial providers:
Designing Data Mosaics for Personalized Outcomes
Overlaying vast data sets from public records, online habits, payment histories, and more can yield granular, tailored solutions that reduce provider risk and better fit consumer needs.
Communicating Data Elements Clearly
Big data can best help consumers manage their financial lives – and demonstrate their value to providers – when they can connect the dots between data used to evaluate them and financial outcomes, are empowered to report errors, and are well-informed about ways to improve their financial standing.
Trading Private Information for Better Value
When consumers voluntarily share private information, providers gain more current, reliable data and customers who opens their books can turn that information into an asset to garner stronger insights, more attractive offers, or lower rates.
Strengthening Models Through Market Adoption
Big Data’s potential to impact consumers and hone compelling models depends on the strength of its adoption. Innovators are reaching target populations efficiently by partnering with established financial institutions, or by collaborating with related industries such as telecom providers and credit bureaus.
Together, these trends support the use of data as a powerful toolset with enormous opportunity to positively influence financial technology innovation by aligning technical prowess with value creation for both providers and consumers.
The Center for Financial Services Innovation (CFSI) is the nation’s authority on consumer financial health. CFSI leads a network of financial services innovators committed to building a more robust financial services marketplace with higher quality products and services, specifically for those who are struggling. Through its Compass Principles and a lineup of proprietary research, insights, and events, CFSI informs, advises, and connects members of its network to seed the innovation that will transform the financial services landscape. For more on CFSI, go to www.cfsinnovation.com and follow us on Twitter at @CFSInnovation.