# How real-time data innovation is driving up customer experience in fintech
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-06
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Real-Time Data Insights for Financial Institutions
Meta Description: Learn why real-time data analytics is crucial for banks and financial institutions to understand customer behaviour, manage risk, and gain a competitive edge.
URL: https://financedigest.com/how-real-time-data-innovation-is-driving-up-customer-experience-in-fintechhtml

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**_Geoff Clark_** _, General Manager EMEA, Aerospike_

![Geoff Clark, General Manager EMEA, Aerospike](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/geoff-clark-283x300-1736838223232-compressed.jpg)

The attention span of individuals and organisations is reducing. Time is compressing. There are only brief windows that can be devoted to any given transaction.

[Expectations around](https://www.financedigest.com/polyimide-fibers-market-is-expected-to-increase-at-a-healthy-cagr-of-around-5-over-the-forecast-period-of-2021-2031.html "Polyimide Fibers Market is expected to increase at a healthy CAGR of around 5% over the forecast period of 2021-2031") situational knowledge, updated in real-time, are compounding. [Customers assume that applications know](https://www.financedigest.com/know-your-customer-lets-make-this-easy.html "Know Your Customer – let’s make this easy") who they are and that their transaction can be completed as quickly as possible whatever their location. If that [doesn’t happen](https://www.financedigest.com/what-happens-if-a-company-doesnt-have-any-records-of-its-rd-activities.html "What happens if a company doesn’t have any records of its R&D activities?"), they will abandon the transaction and quickly move on to another provider.

[Financial institutions](https://www.financedigest.com/what-financial-institutions-will-be-like-in-10-years.html "What Financial Institutions Will Be Like In 10 Years") must do more in ever shorter time frames. Success in the digital world is largely down to how deeply you understand your customer based on multiple data streams and driving decisions that provide a [deeply personalised experience](https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/marketings-holy-grail-digital-personalization-at-scale).

Having a clear picture of your current situation is critical in business.  While you can create models and [analytic dashboards these often can’t provide a real-time](https://www.financedigest.com/upgrading-the-finance-department-the-benefits-of-real-time-analytics.html "Upgrading the finance department: The benefits of real-time analytics") view. The latency of these models may be measured in seconds, minutes, hours, or even days and weeks. As latency extends the picture you have is not in the moment and that can be the difference that defines operating risk. Never has the phrase “time is money” rung truer.

Access to a real-time view of positions enables organisations to [manage risk](https://www.financedigest.com/aon-launches-new-catastrophe-model-to-manage-the-risk-of-icelands-most-disastrous-peril-earthquake.html "Aon launches new catastrophe model to manage the risk of Iceland’s most disastrous peril: Earthquake") more closely, in terms of their aggregate position, based on a transactionally correct view of precisely what they have on their books to respond in real-time to global market changes.

For [banks and financial](https://www.financedigest.com/customer-engagement-trends-that-will-rule-banking-and-financial-services-in-2021.html "Customer Engagement Trends that Will Rule Banking and Financial Services in 2021") institutions, it means knowing the content a customer has seen and the environment where they encountered it. Did they just transfer money or make a payment [online or in a store](https://www.financedigest.com/the-benefits-of-developing-online-stores-through-shopify.html "The Benefits of Developing Online Stores Through Shopify")? What do their digital journeys look like? What online content have they been viewing? Continually adaptive models use the answers to these questions to [select active customers](https://www.financedigest.com/manchester-arts-centre-the-lowry-selects-logpoints-siem-technology-to-safeguard-customer-data.html "Manchester arts centre The Lowry selects LogPoint’s SIEM technology to safeguard customer data") and recommend options that address what they are searching for.

The [customer’s digital experience](https://www.financedigest.com/insurers-ready-to-fight-back-against-poor-customer-experience.html "Insurers ready to fight back against poor customer experience") is composed of multiple linked processes, working in concert to continually understand the customer experience. Different system elements – user profiles, decisioning, recommendation engines, and machine learning and AI – require [data across different time](https://www.financedigest.com/decision-making-in-times-of-crisis-should-they-be-based-on-gut-feeling-or-data.html "Decision-making in times of crisis: should they be based on gut feeling or data?") windows. Some of these [systems deal with terabytes of data](https://www.financedigest.com/interoperability-of-data-to-accelerate-the-ventilator-test-systems-market.html "Interoperability of data to accelerate the Ventilator Test Systems Market") and some petabytes. Some require absolute consistency and for some eventual consistency is good enough. In many of these systems, there is a demand for hyperscale within tight time windows.

The [ability to take in more data](https://www.financedigest.com/new-gleif-challenge-facility-extends-ability-to-trigger-updates-of-legal-entity-identifier-data-to-all-interested-parties.html "New GLEIF Challenge Facility Extends Ability to Trigger Updates of Legal Entity Identifier Data to All Interested Parties") within a given time window feeds the currency of the context. It is not enough to have a lot of data, but you also [need the most current view of that data](https://www.financedigest.com/leaders-recognise-the-importance-of-green-transport-at-cop27-but-we-need-data.html "Leaders recognise the importance of green transport at COP27, but we need data"). Operating at hyperscale enables an [organisation to deliver exponentially more data](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ") than traditional databases. This makes models more accurate and, by extension, more valuable.

**Do More in Less Time** In many ways having a blend of scale and speed provides time, so that you can do more within a given time window. This is what we refer to as a dividend. The use of more data enables the process to be completed in less time.

We call the systems that [interact directly with either customers](https://www.financedigest.com/ai-will-power-95-of-customer-interactions-by-2025.html "AI will power 95% of customer interactions by 2025"), employees, or clients are “edge” systems. They draw and process data within relatively tight time windows. [Edge systems sometimes have expiry windows where data](https://www.financedigest.com/sterling-edges-lower-ahead-of-key-data.html "Sterling edges lower ahead of key data") is deleted after a given time window where it is deemed to be “stale.”

[Data that’s collected and processed at the edge might](https://www.financedigest.com/your-money-is-safe-but-your-data-might-not-be.html "YOUR MONEY IS SAFE, BUT YOUR DATA MIGHT NOT BE") be transferred to a system of record or core transactional store. Here it can be kept for longer periods to provide historical context. These [data sets may grow to petabytes in size while still needing to support response](https://www.financedigest.com/assurance-v-security-reassessing-responsibility-for-data-assurance.html "Assurance v Security: Reassessing Responsibility for Data Assurance") times measured in milliseconds. In order to meet these requirements you must have hyperscale capability, so the performance of [data access is not impacted as the size of the information](https://www.financedigest.com/what-is-a-virtual-data-room-unveil-the-essential-information-here.html "What is a Virtual Data Room? Unveil the Essential Information Here!") repository increases.

Here’s an example related to a [consumer of banking](https://www.financedigest.com/consumer-staples-banks-lift-uks-ftse-100-after-sharp-selloff.html "Consumer staples, banks lift UK’s FTSE 100 after sharp selloff") products. The bank would like to promote relevant products, based upon the individual’s [financial situation and predict how the customer](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") will respond to offers and suggestions.  They must match the information collected [regarding devices](https://www.financedigest.com/rapid-action-force-regarding-innovations-to-drive-the-medical-devices-market.html "Rapid Action Force regarding Innovations to drive the Medical Devices Market"), identity, and patterns that establish context against their database of user profiles. The bank wants to run more sophisticated recommendation engines based on these patterns to ensure they are tailoring the product or [service based on the customer’s](https://www.financedigest.com/revolutionising-customer-service-three-sectors-that-are-leading-the-way.html "Revolutionising Customer Service: Three sectors that are leading the way…") needs.  Establishing a model that tells which [bank customers](https://www.financedigest.com/how-will-open-banking-impact-the-customer-experience.html "How will Open Banking impact the customer experience?") with this profile are much more likely to make a decision to adopt their products,      ensures the analysis and optimisation boundaries go beyond just this transaction or online engagement.  This also allows the [bank to track behaviours in order to validate the model](https://www.financedigest.com/is-this-the-start-of-the-race-to-redefine-the-banking-operating-model.html "Is this the start of the race to redefine the banking operating model?"). It’s necessary that these processes are running, some in parallel, others in sequence:

- Establish an identity profile of the customer
- Match that profile against a database of profiles that models likely desires and behaviours
- Based on that match, determine the products and/or services to recommend
- Select the content and media types based on the user profile
- Determine pricing and offers based upon the user profile, status and the engagement history

The last element, real-time pricing and offers, is something that the [banks will modify to take into account the margin and profitability of the customer](https://www.financedigest.com/visionary-banks-fight-the-blur-hybrid-computing-architecture-brings-a-faster-sharper-customer-experience.html "Visionary banks fight “the blur”: Hybrid computing architecture brings a faster, sharper customer experience") over time.

**Driving up value for both the customer and the business** By building models based on hyperscale capability, 10 milliseconds are saved here, another 20 milliseconds there. This creates time to perform additional processing and make more relevant suggestions and offers – better for customers and better for the business. As more data points are added to [customer](https://www.financedigest.com/should-insurers-buy-data-direct-from-their-customers.html "Should insurers buy data direct from their customers?") profiles as they scale up to include more data overall, it’s important not to experience performance degradation. These time benefits will remain. This is the real-time data innovation dividend that’s driving up the [customer experience](https://www.financedigest.com/is-your-customer-experience-exceptional.html "IS YOUR CUSTOMER EXPERIENCE EXCEPTIONAL?").


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