DATA ANALYTICS IN RETAIL BANKING: A REVIEW OF CUSTOMER INSIGHTS AND FINANCIAL SERVICES INNOVATION

Author:
Adetumi Adewumi, Chidera Victoria Ibeh, Onyeka Franca Asuzu, Odunayo Adewunmi Adelekan, Kehinde Feranmi Awonnuga, Obinna Donald Daraojimba

Doi: 10.26480/bosoc.01.2024.16.21

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

The advent of data analytics has revolutionized the landscape of retail banking, propelling financial institutions to explore innovative ways to enhance customer insights and revolutionize financial services. This paper presents a comprehensive review of the intersection between data analytics and retail banking, focusing on the transformative impact on customer insights and financial services innovation. In the realm of customer insights, data analytics plays a pivotal role in deciphering patterns, behaviors, and preferences. By harnessing advanced analytical techniques, retail banks can glean actionable insights from vast datasets, enabling them to understand customer needs, predict trends, and personalize services. This not only facilitates targeted marketing strategies but also fosters a deeper understanding of customer journeys, thereby optimizing the overall customer experience. Financial services innovation within the context of retail banking is another facet deeply influenced by data analytics. The integration of analytics-driven technologies, such as machine learning and artificial intelligence, empowers banks to develop predictive models for risk management, fraud detection, and credit scoring. These applications not only streamline operational processes but also fortify security measures, safeguarding both the institution and its customers. Furthermore, the review explores the role of data analytics in driving product and service innovation. Retail banks leverage analytics to identify gaps in the market, create customized financial products, and enhance existing offerings. The ability to analyze customer behavior aids in tailoring products that resonate with specific segments, fostering customer loyalty and increasing market share. The review also delves into challenges associated with data analytics in retail banking, including privacy concerns, data security, and regulatory compliance. Striking a balance between extracting valuable insights and respecting customer privacy remains a crucial consideration for banks navigating the data analytics landscape. The synthesis of data analytics and retail banking heralds a new era of customer-centricity and financial services innovation. As financial institutions continue to harness the power of data, the review underscores the need for ethical considerations and robust data governance frameworks to ensure sustainable and responsible implementation of data analytics in the retail banking sector.

Pages 16-21
Year 2024
Issue 1
Volume 2