Product Code: IT003-000594
The volume of data that can be used for analysis has exploded across the Internet-connected world and is now impacting the banking industry, thanks to growing customer engagement with banking channels and expanding capabilities to track and analyze machine-generated data. Although it is not only used with analytics, Big Data will dramatically extend the footprint of areas such as fraud analytics, customer analytics, and web analytics, and other analytics areas used in banking.
- Banks are challenged mainly by revenue generation and risk and compliance management, but they are also investing in technology tools that will allow them to achieve these goals. Results from Ovum's ICT Enterprise Insights survey show that the top IT projects of retail and corporate banks and wealth managers are managing enterprise risk, security, and compliance and exploiting information for business insights. Big Data projects specifically enhance areas such as web security, compliance checks, and customer analytics.
- It is essential for banks to know their data, understand it, and understand the characteristics of the data that they need. Banks need to look to capture more information than they are used to, going beyond risk and marketing data, and treat it as an enterprise asset.
- Provides C-level executives' views on current business priorities and business strategies, and demonstrates the potential for Big Data projects to support these.
- Considers the performance of Big Data initiatives across data management and analysis as well as operational efficiency, innovation, functionality, and agility.
- How should I leverage Big Data for current and future banking initiatives?
- How can I facilitate the launch of a Big Data project at my bank?
Table of Contents
- Ovum view
- Key messages
- Big Data will boost the effectiveness of analytics in banking
- Spending on management information systems (MIS) will hit $9.3bn by the
end of 2018
- Creating a Big Data project is not only a technology issue
- Banks must discover and understand their data
MARKET FORCES DRIVE EVALUATION OF BIG DATA
- Banks are challenged by revenue generation and risk and compliance
- Business insights and risk and compliance management drive opportunities
for Big Data
- Retail banks' spending on MIS will hit $9.3bn by the end of 2018
REAL USE CASES FOR BIG DATA IN BANKING
- Bank of America sees the need to glue NoSQL data with graph and columnar
- Big Data helps to optimize infrastructure
- Big Data will enhance risk, compliance, and customer analytics
- Citi has built its Big Data platform as a shared resource platform
- Citi is taking its Big Data project out of R&D and the business
- Citi's Big Data platform is a shared resource
- Big Data provides new business insights and reduces storage costs
- Zions Bank optimizes marketing with customer insights from Big Data
- Zions' Big Data project expands beyond one group
- The main benefit of Big Data is the ability to collect and analyze
various types of data from a variety of sources
BIG DATA PROJECTS ARE ALL ABOUT DATA
- Data and processes are contained in multiple overlapping and conflicting
- Creating a Big Data project will involve people, processes, and technology
- People: overcoming cultural inertia and turf issues
- Common processes: setting the ground rules for managing information
- Technology: getting core data sources and common process in place
- Recommendations for enterprises
- The transformation process needs to start at C-level
- Discover and understand your data
- Recommendations for vendors
- Defining the solution category is a significant investment that may
result in solid gains
- Focus on value and innovation
- Further reading
- Ovum Consulting
- Figure 1: Retail banks' top business challenges
- Figure 2: Retail banks' top IT project areas
- Figure 3: Retail banks' spending on MIS, 2013-2018
- Figure 4: Bank of America's visualization of job-processing bottlenecks
using Big Data
- Figure 5: Gluing together Big Data platforms
- Figure 6: Citi's shared Big Data Platform Map
- Figure 7: Retail banks' criteria in selecting an IT provider