Big data is fast becoming the new frontier for lending businesses to compete. As businesses rush towards becoming more data driven, we provide an insight into how you should map this journey.
Recognize the Right Reason to Use Big Data
Perhaps the biggest question at the roots of big data adoption is when do organizations choose to become data driven. As it turns out, the decision can be inspired by competitors, fueled by threats of being left behind or the urgency to curtail climbing losses. However, big data decisions should be based on a simple realization, i.e. this is the only way forward in the real estate marketplace. Big data translates into survival and better performance.
The real estate marketplace is rather complex. Economic trends and customer preferences change often. Once you are adorned with big data, you will be ready to address most data-related threats. Your industry challenge-readiness will never be questioned. However, caution and future-preparedness shouldn’t be the only reason to adopt big data.
You should realize that this is a step towards better understanding consumer sentiments and improving your internal processes. You should realize that being data driven means that you will be able to recognize the most subtle of opportunities. Think of big data as a basic tool to get innovative without increasing your risk exposure. Technological threats can be very subtle. These can be better identified with big data. The same applies to using actionable data for better product conceptualization and creating bundled offers for engaging more borrowers.
Strategize Before Shooting for Big Data
Adopting big data might seem like a one dimensional decision. However, this is a misconception. There is much more to becoming data centric and relying on analytics. Just jumping into action mode without strategic planning can increase your big data costs and lower the quality of results.
You need careful planning before choosing a big data model. For instance, do you plan to outsource your data analytics work? Which of the present employees/managers are better suited to interpret analytical figures, algorithms, costing charts, etc.? Is there a system in place where frontline managers can provide immediate feedback to fine-tune data-inspired, new business models?
For some lending institutions, adopting big data might mean recruiting more IT resources and analytical manpower. Some might choose to opt for big data service providers and data analytics vendors.
You might need to buy some industry data from data vendors. Essentially, all these questions and the related costs should be a part of your big data planning. You might realize the need to reorganize your current resources before signing a big data vendor! This introspection is critical.
Starting the Big Data Change Might Seem Impossible, but it Isn’t!
Many businesses feel apprehensive about adopting big data because they realize that their data resources are random. It seems chaotic to start with organizing data hidden in silos of organizational records, buried in remote sites. Rather than getting overwhelmed, concentrate on getting started.
You don’t need data specialists to start your big data journey. You can start by creating two fundamental categories for collecting all data, i.e. internal and external data. However, you might need expert guidance towards approaching complex data. Before seeking professional advice, it is better to run an internal audit. This will help you confirm the basics—business units that can readily provide useful data and those that will need a lot of push.