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

Abstract

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.