Homebreadcumb forward arrow iconBlogbreadcumb forward arrow iconBig Databreadcumb forward arrow iconTop 5 Big Data Applications in Banking & Insurance

Top 5 Big Data Applications in Banking & Insurance

Last updated:
11th Sep, 2019
Read Time
4 Mins
share image icon
In this article
Chevron in toc
View All
Top 5 Big Data Applications in Banking & Insurance

By nature, the banking, financial services, and insurance (BFSI) sector have always been data-driven. However, today, institutions in the BFSI sector are increasingly striving to adopt a full-fledged data-driven approach that can only be possible with Big Data technologies. With Big Data Analytics, companies in the BFSI sector can not only grow their business but also work towards increasing customer satisfaction. 

Although data analytics has been an integral part of the BFSI sector, nowadays, companies in this sector are steering towards Big Data Analytics. The fundamental question that stakeholders ask before adopting Big Data is –

How can Big Data enhance our business and solve our problems?

With Big Data, companies can access valuable and accurate insights from large datasets, which gives them a competitive advantage over their rivals. Big Data the potential to bring many benefits to the table, including increased levels of customer insight and engagement, improved market trading analysis, and enhanced fraud detection and prevention, among other things. The most noteworthy contribution of Big Data to the BFSI sector is ‘real-time evaluation’ that allows banks and financial institutions to track and monitor customer behavior in real-time and offer prompt solutions accordingly. As the quality of services improves and delivery time reduces, it will provide a significant boost to customer satisfaction while also improving the overall profitability of the organization. 

Ads of upGrad blog

upGrad’s Exclusive Software Development Webinar for you –

SAAS Business – What is So Different?


Big Data allows BFSI institutions to obtain a comprehensive understanding of customers, products/services, markets, industry regulations, competitors, and advertising channels. The most significant areas of application of Big Data in the BFSI industry are:

  1. Improved levels of customer insight and engagement

Thanks to the digitization of financial products and services, customers are now increasingly interacting with BFSI institutions/brands on digital platforms. By leveraging Big Data technologies to dissect the data derived from digital channels (like social media), BFSI institutions to enhance their quality of products/services as they can gain a deeper understanding of customer pain points, preferences, and needs. Gaining customer insights is crucial not only to improve the customer experience but also to stay ahead in the competitive market. 

  1. Improved fraud detection and prevention

It is not an unknown fact that the BFSI sector has long been the victim of fraud. Over time, the techniques and methods of hacks and breaches have evolved and upgraded to become more complex and sophisticated. This is where Big Data comes in. Big Data Analytics and tools can process and analyze massive datasets to identify patterns and predict fraudulent activities. This helps minimize financial losses to a great extent. 

Explore Our Software Development Free Courses

  1. Improved market trading analysis

The rapidly increasing demand for the speedy execution of market trading in the financial sector has driven the adoption of Big Data for the same. The prime benefactor of Big Data is trading strategies that leverage sophisticated algorithms to trade financial markets rapidly. The BFSI market data is a vast ocean of Big Data itself. Big Data tools and analytics, the data gathered from different markets (based on geographical location, asset classes, market type, etc.) can be compiled with other structured and unstructured data to produce rich, hybrid datasets. These hybrid datasets offer a real-time, 360-degree view of the market scenario covering aspects like profit and loss (P&L) reporting, latest trends, trade execution, risk measurement, to name a few. 

  1. Enhanced risk management

When it comes to risk management, Big Data finds application in areas like operational risks, integrated risk management, fraud management, credit management, and market and commercial loans. Big Data tools can:

  • Exponentially boost the predictive power of risk models, 
  • Enhance the system response time and effectiveness, 
  • Offer more extensive risk coverage, and, 
  • Create opportunities for optimum cost savings. 

The risk management teams can obtain highly accurate risk intelligence by gathering data from disparate sources in real-time.

Explore our Popular Software Engineering Courses

  1. Enhanced employee engagement

Apart from all the ‘technical’ benefits, Big Data has another pivotal benefit – enhancing the employee experience. By leveraging Big Data tools and techniques correctly, companies can track, monitor, and analyze the performance metrics of their employees. This will help identify the strongest performers in the company as well as the weak or unhappy performers. Accordingly, companies can reward the top performers and take initiatives to improve the condition of weak/unhappy employees as well. In the long run, this will not only help build a productive and happy employee base but also a good work culture.  

In-Demand Software Development Skills

Wrapping up

Thanks to Big Data Analytics and tools, companies in the BFSI sector are now able to deliver improved services at marginalized costs. As organizations in this industry are witnessing the first-hand experience of reaping the benefits of Big Data, more companies are joining in, thereby driving the growth of the global Big Data market in the BFSI sector.

Ads of upGrad blog

If you are interested to know more about Big Data, check out our Advanced Certificate Programme in Big Data from IIIT Bangalore.

Read our Popular Articles related to Software Development

Learn Software Development Courses online from the World’s top Universities. Earn Executive PG Programs, Advanced Certificate Programs or Masters Programs to fast-track your career.



Blog Author
We are an online education platform providing industry-relevant programs for professionals, designed and delivered in collaboration with world-class faculty and businesses. Merging the latest technology, pedagogy and services, we deliver an immersive learning experience for the digital world – anytime, anywhere.
Get Free Consultation

Select Coursecaret down icon
Selectcaret down icon
By clicking 'Submit' you Agree to  
UpGrad's Terms & Conditions

Our Popular Big Data Course

Frequently Asked Questions (FAQs)

1How can Big Data benefit companies?

Big Data can help enterprises in a variety of ways, as long as they can collect insights from the data, generate actionable insights, and apply those insights to use. Customer service can be improved using Big Data, and marketing strategies can be personalized. They can also assist in enhancing worker productivity as well as everyday operations and service delivery. Big Data also aids in the reduction of operating costs and the identification of new income sources. It also enhances products and services, allowing businesses to acquire a competitive advantage in the marketplace. Big Data allows companies to obtain a better understanding of their consumers and markets, as well as improve supply networks and delivery routes.

2What are the limitations of Big Data?

Many businesses lack the in-house expertise required to design, install, manage, and exploit Big Data. The types of data, the volumes of data, and the many origins of that data make it difficult to secure data and preserve personally identifiable information. Infrastructure scaling to fulfill performance and storage needs may be a time-consuming and expensive procedure. Analyzing big volumes of heterogeneous data takes time and resources, and it doesn't necessarily yield meaningful insights or expected results. Infrastructure, software, and labor costs may quickly mount up, making them difficult to manage.

3What are the 5 Vs in Big Data?

Explore Free Courses

Suggested Blogs

Characteristics of Big Data: Types & 5V’s
Introduction The world around is changing rapidly, we live a data-driven age now. Data is everywhere, from your social media comments, posts, and lik
Read More

by Rohit Sharma

04 Mar 2024

50 Must Know Big Data Interview Questions and Answers 2024: For Freshers & Experienced
Introduction The demand for potential candidates is increasing rapidly in the big data technologies field. There are plenty of opportunities in this
Read More

by Mohit Soni

What is Big Data – Characteristics, Types, Benefits & Examples
Lately the term ‘Big Data’ has been under the limelight, but not many people know what is big data. Businesses, governmental institutions, HCPs (Healt
Read More

by Abhinav Rai

18 Feb 2024

Cassandra vs MongoDB: Difference Between Cassandra & MongoDB [2023]
Introduction Cassandra and MongoDB are among the most famous NoSQL databases used by large to small enterprises and can be relied upon for scalabilit
Read More

by Rohit Sharma

31 Jan 2024

13 Ultimate Big Data Project Ideas & Topics for Beginners [2024]
Big Data Project Ideas Big Data is an exciting subject. It helps you find patterns and results you wouldn’t have noticed otherwise. This skill
Read More

by upGrad

16 Jan 2024

Be A Big Data Analyst – Skills, Salary & Job Description
In an era dominated by Big Data, one cannot imagine that the skill set and expertise of traditional Data Analysts are enough to handle the complexitie
Read More

by upGrad

16 Dec 2023

12 Exciting Hadoop Project Ideas & Topics For Beginners [2024]
Hadoop Project Ideas & Topics Today, big data technologies power diverse sectors, from banking and finance, IT and telecommunication, to manufact
Read More

by Rohit Sharma

29 Nov 2023

Top 10 Exciting Data Engineering Projects & Ideas For Beginners [2024]
Data engineering is an exciting and rapidly growing field that focuses on building, maintaining, and improving the systems that collect, store, proces
Read More

by Rohit Sharma

21 Sep 2023

Big Data Architects Salary in India: For Freshers & Experienced [2024]
Big Data – the name indicates voluminous data, which can be both structured and unstructured. Many companies collect, curate, and store data, but how
Read More

by Rohit Sharma

04 Sep 2023

Schedule 1:1 free counsellingTalk to Career Expert
footer sticky close icon