Since the global financial crisis of 2008, the focus of the banking industry has largely been inwards, working on complying with new post-crisis regulation and regaining customer trust. But now it is time for banks to focus on their core mission, which is serving its customers and being an engine for growth and economic development in the society.Customers also expect more from their Banks. Post-financial crisis, not only do they expect more transparency and diligence from their banks, they also expect their bank to create products and services that fit their life-style needs and take into account all the ways an individual or a family interacts with the bank. 81 out of 100 banking practitioners surveyed by Bloomberg Businessweek Research Services quoted customer centricity as their top priority.
A similar recurring theme emerged at Sibos 2013 in Dubai: how can banks take advantage of their big data in a way that non-regulated companies like Amazon and Google can. Brian Caplan, moderator of Technology session “Big Data: Big Deal” at Sibos noted that “90% of the world’s big data was created
in the past 12 months”[1].
in the past 12 months”[1].
The challenge faced by many banks is managing legacy data warehouses and sourcing the specialized skills required to analyze the data.
“It is all about finding the right people who can understand the data…It isn’t good data if you can’t use it” remarked Jennifer Boussuge,head of Global Transaction Services for Merrill Lynch in EMEA. One out of two banking executives responding to Bloomberg Businessweek Research Services survey conducted in July 2013, believe that they do not have mature capabilities to support their customer strategies and that technology plays a key-role in customer focused strategy.
Technology advances that enable banks to take advantage of Big Data with in-memory databases that process data in real-time coupled with data visualization and predictive analytics have come into market in the past 12 months. These allow the banks to meet the challenges listed above head-on
effectively and efficiently.
effectively and efficiently.
To learn strategies to take advantage of your Big Data with predictive analytics, join us for the webinar “Gain Enhanced Insight through Predictive Analytics in Banking” on Wednesday, November 27th, 2013 at 3:00 pm CET (9:00 am EDT | 6:00 am PDT). PKO Bank Polski, Poland’s largest banking institution, and representatives from SAP will share leading practices for segmenting customers more effectively and optimizing customer lifetime value in an omnichannel strategy.
[1] “Lost in the Amazon” published in SIBOS issue dated Sept 17, 2013
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