# HOW ADVANCED DATA ANALYTICS IS PIONEERING A REVOLUTION IN FINANCIAL SERVICES Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-06-02 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: Unlocking the Power of Social Data in Financial Services Meta Description: Discover how Hello Soda taps into social media data to revolutionise business strategies and boost financial inclusion. Learn more with our latest study. URL: https://financedigest.com/how-advanced-data-analytics-is-pioneering-a-revolution-in-financial-serviceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/laptop-1736844726332-compressed.jpg) By **James Blake,** founder and CEO of big data firm **Hello Soda** James Blake One out of every six waking minutes is spent on social media. Consumers post, comment, tweet, and like multiple times a day, creating more and more online data exponentially. Social media is a huge contributor to the vast mine of big data which is growing daily; but only 0.5% of big data is actually being tapped for the meaningful insights it can reveal. Not utilising this data not only means [businesses are missing](https://www.financedigest.com/foreign-business-travel-missing-ingredient-for-irish-hotel-recovery-dalata.html "Foreign business travel missing ingredient for Irish hotel recovery – Dalata") out, it might even be costing them valuable business. [Social media analytics can help businesses](https://www.financedigest.com/how-to-use-social-media-platforms-to-successfully-scale-your-business.html "How to use social media platforms to successfully scale your business") truly understand consumers on a more personal level. Knowing what [consumers desire in a product](https://www.financedigest.com/welding-consumables-market-continue-to-be-largest-product-segment-in-consumer-market.html "Welding Consumables Market Continue to be Largest Product Segment in Consumer Market"), what they want in a brand, what services are relevant to them and even what puts them off, can completely revolutionise a company’s strategy. Hello Soda has proven expertise in the sector and work with 50 clients all over the world as far afield as Asia in sectors including [financial services](https://www.financedigest.com/financial-services-firms-turn-to-big-data-intelligence-to-fight-fraudulent-activity-according-to-xerox-study.html "FINANCIAL SERVICES FIRMS TURN TO BIG DATA INTELLIGENCE TO FIGHT FRAUDULENT ACTIVITY ACCORDING TO XEROX STUDY"), recruitment, tenant vetting and marketing.  We’ve just published a new study in partnership with Visa Europe Collab which explores the power of [social media profiling and its potential to financial services](https://www.financedigest.com/can-financial-services-brands-ever-be-credible-on-social.html "Can financial services brands ever be credible on social? "). The research reveals how online social footprints can be used to boost financial inclusion, detect fraud, enhance contactless and e-commerce and enable more [targeted marketing](https://www.financedigest.com/automotive-ecu-market-size-analysis-top-players-target-audience-and-forecast-to-2026.html "Automotive ECU Market Size, Analysis, Top Players, Target Audience and Forecast to 2026") – all on a consent-only basis. The results demonstrated that utilizing social media [data can benefit](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") both consumers and businesses. By applying advanced data analytics, natural language processing, the big five personality traits and other psycholinguistic profiling techniques to people’s social media interactions, the study identified that these methods could create a new, effective way to verify consumer identity and widen access to financial products. ID verification through pioneering social data [analytics is particularly revolutionary for some developing countries where large portions of the population have been excluded from traditional financial services](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES") or may not have official identity documents. According to our study and the results we see each day through our business, social [data driven](https://www.financedigest.com/the-role-of-intuition-in-an-increasingly-data-driven-world.html "The Role of Intuition in an Increasingly Data-Driven World") services could also increase addressable markets for lenders through the introduction of alternative methods of risk assessment for individual borrowers. Implementation of this [type of analysis](https://www.financedigest.com/turbo-compounding-systems-market-development-status-competition-analysis-type-and-application-2026.html "Turbo Compounding Systems Market Development Status, Competition Analysis, Type and Application 2026") could enable individuals who are not able to provide adequate assurance to lenders through traditional data sources such as credit checks. Individuals who could benefit include young people without a long-standing credit history who are struggling to [buy](https://www.financedigest.com/bnp-paribas-buys-majority-stake-in-dutch-firm-dynamic-credit-group.html "BNP Paribas buys majority stake in Dutch firm Dynamic Credit Group") their first home and foreign immigrants unable to transfer credit history between countries. These customers could now be able to access [credit – potentially for the first time](https://www.financedigest.com/credit-suisse-executives-reassure-investors-after-cds-spike-financial-times-reports.html "Credit Suisse executives reassure investors after CDS spike, Financial Times reports"). And when it comes to debt, the study found that by combining social [data and financial](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") history, consumers could actually be protected from over-spending. Information around planned expenditure, trends in financial consumption and upcoming expensive events such as birthdays or weddings are all available through the convergence of social and financial data and by integrating analysis of this information into banking and payment applications, real time preventative measures which protect consumer [credit ratings](https://www.financedigest.com/credit-suisse-group-rating-downgraded-by-sp.html "Credit Suisse Group rating downgraded by S&P") and lower lending risks for banks could become a reality. For a student with a loan that is [due to last an academic term](https://www.financedigest.com/automotive-glass-market-to-witness-sales-slump-in-near-term-due-to-covid-19-long-term-outlook-remains-positive.html "Automotive Glass Market to Witness Sales Slump in Near Term Due to COVID-19; Long-term Outlook Remains Positive"), social and financial data could combine to provide individuals with accurate real time monthly expenditure projections intervening with warning messages when spending behaviour is likely to be unsustainable. The research also highlighted the possibility of preventing fraudulent financial transactions before they take place. For banks and e-commerce merchants the challenge is to accept as many good payments while [avoiding fraudulent ones and with the use of social identity verification it’s possible they can authenticate transactions more accurately and enhance their existing fraud detection capabilities by tapping into social data](https://www.financedigest.com/avoiding-a-big-data-car-crash-how-to-organise-your-data-to-detect-fraudulent-claims.html "Avoiding a big data car crash: How to organise your data to detect fraudulent claims"). In addition, the possibilities for greater and more accurate personalisation and targeted marketing campaigns were also identified in the research paper and, with the intelligent application of [big data analytics](https://www.financedigest.com/big-data-analytics-fraud-prevention-in-the-financial-sector.html "BIG DATA, ANALYTICS & FRAUD PREVENTION IN THE FINANCIAL SECTOR"), this could potentially increase engagement and up-take in financial services products and services. Currently, due to the vast amount of unwanted and irrelevant offers, the average click-through rate in the [industry globally](https://www.financedigest.com/truck-mounted-concrete-mixer-market-size-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2022.html "Truck Mounted Concrete Mixer Market Size, Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2022") is just 3% but personalised and relevant targeting could see this significantly rise. The FinTech revolution is creating opportunities for the industry to innovate and take major steps forward when it comes to financial inclusion, ID verification, tackling fraud, [debt management](https://www.financedigest.com/managing-debt-ways-to-get-out-of-debt-and-staying-debt-free.html "Managing Debt: Ways to Get Out of Debt and Staying Debt-Free") and more accurately targeting consumers with personalised offers instead of bombarding them with irrelevant ones. We are making ground-breaking discoveries each and every day through big data analytics and what’s exciting is that as an industry, we’re only just [scratching the surface](https://www.financedigest.com/explainer-western-sanctions-on-banks-only-scratch-surface-of-fortress-russia.html "Explainer-Western sanctions on banks only scratch surface of Fortress Russia"). [Big data has far-reaching possibilities in it’s ability to positively](https://www.financedigest.com/pimco-cut-big-position-in-russia-cds-by-adding-bonds-in-q2.html "PIMCO cut big position in Russia CDS by adding bonds in Q2") impact both the consumer and businesses. For more information on big data analytics and Hello Soda’s capabilities, visit www.hellosoda.com. You can also follow @ [Hello\_Soda](http://www.twitter.com/hello_soda) on Twitter --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---