METHODOLOGICAL IMPLEMENTATION OF CRISP-DM IN FINTECH SERVICES

What is it about?

The financial markets are undergoing a significant transformation due to the changing behavior of individual investors. This shift is moving from traditional investment options to more complex financial products. Advancements in technology and a greater understanding of investments have contributed to this change by diminishing trust in conventional financial institutions. The integration of big data analytics within FinTech is essential for understanding client behavior and personalizing services to meet individual needs. By employing methodologies such as the Cross Industry Standard Process for Data Mining (CRISP-DM), FinTech firms can systematically extract insights from data, ultimately enhancing customer satisfaction through tailored investment strategies. The CRISP-DM framework outlines critical stages for effectively managing the complexities of data-driven decision-making in the financial sector. This paper discusses the methodological implementation of CRISP-DM in the FinTech industry, highlighting its role in optimizing service delivery and improving customer engagement through data analysis and strategic modeling.

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Why is it important?

Integrating the Cross-Industry Standard Process for Data Mining (CRISP-DM)into the FinTech sector marks a significant advancement in leveraging big data to enhance user experiences and optimize financial services. This approach provides a framework to navigate the dynamic environment of the FinTech industry, enabling a more comprehensive understanding for customers, regulators, and potential sector investors. The structured methodology of CRISP-DM facilitates a thorough grasp of business objectives, data characteristics, and modeling processes essential for effective knowledge extraction. The evolving behavior of individual investors, combined with technological advancements, has created a favorable environment for FinTech companies to thrive by offering personalized financial solutions tailored to specific consumer needs. By systematically implementing this methodology, FinTech companies can improve service delivery and foster greater customer satisfaction through customized investment strategies. The dynamic nature of the financial system provides a solid foundation for adopting such data-driven approaches. Furthermore, these actions are becoming essential for maintaining competitiveness and meeting the ever-changing demands of consumers in the financial services market.