Big Data and Big Banks: What’s the Big Deal? Wells Fargo & Company (WFC)

Page 1 of 2

Big data is big news, as businesses of all stripes rush to mine the treasure troves of consumer information that will make targeting their specific products so much easier and more profitable. Big banks are looking to cash in on this new marketing tool, as well — but the fruits of such a revolution may be a very long way off.

Information right at their fingertips
For banks, the idea of big data seems like a no-brainer. Not only do they have much sensitive personal information obtained through the account-opening process, but they also have access to so much more. If you want to know what a customer’s shopping proclivities are, where better to look than at their credit card, debit card, and checking account statements?

Wells Fargo & Co (NYSE:WFC)

So far, however, it has not been so easy. Although banks generate boatloads of data about their customers, they seem at a loss as for how to use it. A recent study by Celent notes that banks should start with their own reams of data before attempting to parse information gathered by outside entities. For example, why not parse data gathered through the aforementioned bank accounts before trying to make marketing sense of social media chatter?

A hefty investment is needed to utilize big data
Another thing that may have held banks back is cost. As many big banks have cut expenses and streamlined operations, that sort of investment may have been seen as too high. Analysts note that it is not inexpensive to collect, store, and scrutinize the type of data that banks typically collect. The technology investment can be sizable, which is probably why the trend is starting with the biggest banks.

The Wall Street Journal reports that Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Company (NYSE:WFC) are leading the way in the use of big data, crunching consumer information to discover which of their customers will make the best consumer of additional banking products. JPMorgan is also using analyzed credit card information in conjunction with government statistics to create reports on consumer behavior for some of their clients.

Bank of America, meanwhile, admits to using only about 1% of the 65 petabytes – each unit of which is equal to 1,000 terabytes – of information it has on its customers. The bank recently used at least some of this vast amount of data to rejigger its cash management offerings to better suit customers. For its part, Citi has used big data to help its international clients better assess which emerging markets to move into.

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!