Economic Effects of the Digital Transformation on the Banking Market Using the Example of Savings Banks and Cooperative Banks in Germany

The German banking sector is undergoing a massive transformation phase due to increasing digitalization. This challenge is enormously influenced by demographic change, the low-interest phase, technological progress as well as supervision and regulation. As a result, banks in Germany are forced to deal with strategies for customer centricity. In this context, Big Data analytics can be seen as a useful tool to better understand customers, e.g. by predicting product affinities, purchase probabilities or distribution channel preferences. The consolidated view of Big Data Analytics and Customer Centricity is already considered in the scientific literature. The studies on the combination of Big Data Analytics and the German banking sector, on the other hand, are rudimentary so far. The main purpose of this research is to answer the following research questions: [I: “Does Big Data Analytics improve the quality of advice (measured by the principles of client advisory services) from an advisor’s perspective and does it have an influence on customer loyalty?”] and [II: To what extent can Big Data Analytics make a positive contribution to the situation of banks in the age of digitalization?”]. To answer the research questions, the results of a survey of banking experts (N = 43) form the backbone of this empirical research. The findings of this paper can be of benefit to researchers and practitioners alike, in order to make the potential of big data analytics recognizable and usable for banks in the context of customer centricity.

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Big Data Analytics and the Discovery of the Hidden Data Treasure From Savings Banks in Germany

Giebe

2022

Advances in Business Information Systems and Analytics

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The banking sector in Germany is undergoing a massive change. The reasons are digitalization, changing customer behaviour, and low interest rates. The focus of this research is on the savings banks in Germany. Savings banks could miss the boat in the age of digital transformation. On the one hand, savings banks are demonstrably forced to take drastic measures, such as mergers, branch closures, and staff reductions. On the other hand, savings banks possess more data about their customers than other industries. Savings banks can order a big data analytics solution called “Sparkassen-DataAnalytics” (aka savings banks data analytics). Sparkassen-DataAnalytics could be used to offer customers tailormade banking products from the information obtained. It is an open secret that costs can be reduced through a higher degree of automation. The main purpose of this research is to discuss to what extent big data analytics could be a lifeline for German savings banks. Research methods are a literature review and subsequent discussion on the use of big data analytics in the German banking market.

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Economic Effects of the Digital Transformation on the Banking Market Using the Example of Savings Banks and Cooperative Banks in Germany

Cited by 4 publications

References 9 publications

Quo vadis – Social Media. Eine Analyse der Nutzung von Social Media am Beispiel von Facebook bei den Sparkassen in Deutschland

Quo vadis – Social Media. Eine Analyse der Nutzung von Social Media am Beispiel von Facebook bei den Sparkassen in Deutschland

Big Data Analytics as an elementary Customer Loyalty Instrument for German banks – an empirical approach from a banker’s perspective

Big Data Analytics and the Discovery of the Hidden Data Treasure From Savings Banks in Germany

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