Big Data Analytics as a necessary instrument for the banking sector in the age of digitalization

Digitalization is confronting the German banking sector with far-reaching structural challenges. In this context, this paper examines the strategic relevance of big data analytics (BDA) for banks in Germany. The aim of the paper is to analyze whether BDA is a fundamental tool for ensuring competitiveness in the digital age. Based on a comprehensive literature review and the application of the VRIN model and Porter's five forces model, BDA is evaluated as a strategic resource. The results show that BDA offers significant added value: it enables a more precise customer approach, the optimization of internal processes and improved risk management. At the same time, BDA is an answer to the growing competitive pressure from fintechs, changing customer requirements and technological substitutes. The analysis concludes that BDA is not just a technological option, but a business-critical necessity for German banks. In order to sustainably exploit the potential of BDA, technological, regulatory and cultural challenges must be taken into account. The results of this article can be useful for researchers and decision-makers in banks in order to identify and utilize the potential of BDA at all levels of an organization.