HYDERABAD: Big data and data analytics, are going to play a big role in financial and banking services post demonetisation, as most of the financial transactions are set to go online.
Though banks, Non Banking Financial Companies (NBFCs) and other companies dealing with financial services are already using data analytics, its importance is set to grow by leaps and downs in the new scenario.
“We have recently tied up with a data analytics firm to assess the creditworthiness and intent of the borrowers. We are confident that data analytics will help us in great way in the upcoming days to make correct decisions,” said Shankar Vaddadyi founder and director of i-lend.in, a peer to peer lending company, based out of Hyderabad.
Lending companies like i-lend believe that by analysing the digital footprint of a person, his attitude, preferences, financial status, societal status and other core information can be gleaned and ascertained. The stress on big data and data anlaytics has become so pronounced that some financial companies have been giving more importance to data analytics than CIBIL score.
“Banks do not give loans to a person if his CIBIL score is less and they follow it absolutely. But some times a person might default on a loan due to various unavoidable reasons even though he is genuine. Data analytics can provide even better insight than CIBIL score about a person’s creditworthiness.
And the results arising out of data analytics will have accuracy of more than 90 percent,” explains Madhava Turumella, CEO of Cove Venture, a data analytics company.
Besides banks and NBFCs, government departments like Income Tax Department, Registration Department and law enforcing agencies are already using data analytics.
This trend is only set to increase on a huge scale post demonetisation, thus creating new opportunities and market for companies involved in big data and data analytics.
“Already we have been using data analytics detect insurance related frauds. Post demonetisation our job is set to become easy and more accurate, as most of the financial transactions are set to go online and people inadvertantly leave digital footprints,” added R Raghavan, CEO of Indian Insurance Bureau.