7/21/2019 XIMB_Envision 2015_Aayush.docx

http://slidepdf.com/reader/full/ximbenvision-2015aayushdocx 1/2

TRANSFORMING FINANCIAL SERVICES THROUGH BIG DATA*1  ANALYTICS

Throughout human history, the kind of monetary exchange has universally been dependent on the

 prevailing technologies of those times. Humans started with the barter system, graduated to precious

metals, paper currency, bank cheques and cards, and now the internet. In the age of internet, the concept

of Big ata is not a new one, what is new though is the prolonged absence of a successful global example

illustrating the power of Big ata !nalytics in the "inancial #pace.

However, global trends$% indicate that Big ata !nalytics are set to change the ground rules by creating

competitive first&mover advantage. The reason for this is two&fold' #upply and emand. (n the supply

side, the increase in bulk data is pushing for technological advances like Big ata to be developed in its

entirety. (n the demand side there is a never ending need among companies, fighting for their market

share, to understand the analytics behind bulk data. There are several interesting ways in which Big ata

!nalytics can transform financial services'

!. )ust as  Netflix  stormed the video rental market by using correlation techniques between customers

having similar tastes for movies, Big ata can also be exploited using statistical tools to correlate similar 

 profiles and make cross&suggestions for financial products. It would also help banks in coming up with

 better targeted campaigns and offers for its existing and potential customer base.

B. *ven the customers, investors and shareholders themselves can exploit the analytical edge of Big ata

 by extracting current and historical data about their respective companies, intelligently$+.

. Big ata can also help organi-ations to directly measure and compare the financial performance of its

different subunits and accordingly take corrective measures. ata "orecasting can also prove to be

 beneficial here.

. In modern times, the increased use of mobile and online banking activities has lead to an increased risk 

as well. isk /itigation and "raud etection can be done using Big ata !nalytics in almost real time$ 0.

This also helps in increasing customer loyalty and retention.

*. /obile !pplications of banks can use the Big ata directly collected from their users to enhance user 

experience and convenience. The trend is already visible with the launch of several mobile&only$1 banks.

". *ven non&financial firms can exploit online financial transactional data$ 2  to understand consumer 

 behaviors and patterns.

3. ertain ancillary benefits of Big ata can be in extracting useful insights from the financial records of 

 people which may serve the larger goals of the society by pinpointing, say, the right medical treatment,

the right government subsidy or the right investment for old age.

However, the !chilles4 Heel is also multi&fold$5. The prime concern for customers is privacy and security.

The banks must not, in lieu of helping their customers, be intrusive. In the age of social media, it might

 backfire. "inancial firms also face the challenge of acquiring and maintaining 6pay scale of7 talented

individuals, especially those equipped with technical skills like #!#88#9:8;ython programminglanguages. !nother challenge facing the firms is in relation to data quality. "or example, if structured data

is created from unstructured data, it needs to pass through quality checks and controls.

 <onetheless, Big ata !nalytics is bound to revolutioni-e the current financial environment, by its huge

number of possibilities. The need of the hour is exemplary global financial firms to emerge by setting

 benchmarks for making use of data, =udiciously. Thus, Big ata !nalytics can easily be compared to a

new born baby which is perhaps, even yet to learn walking. Its adulthood definitely beholds a lot of 

 promise.

7/21/2019 XIMB_Envision 2015_Aayush.docx

http://slidepdf.com/reader/full/ximbenvision-2015aayushdocx 2/2

REFERENCES (SOURCES + LINKS)

$>. 3artner, "inancial Times 6%?>+7 & efinition of Big ata' Big data is high&volume, high&velocity and

high&variety information assets that demand cost&effective, innovative forms of information processing

for enhanced insight and decision making.

http'88im.ft&static.com8content8images8e@>a+%d?&%bac&>>e+&bfe%&??>00feab5de.pdf 

$%. "orbes, Tech division 6/ay %1, %?>17 & etailed trends in the emerging Big ata #pace

http'88www.forbes.com8sites8louiscolumbus8%?>18?18%18roundup&of&analytics&big&data&business&

intelligence&forecasts&and&market&estimates&%?>18

$+. *B#( database & Big ata and entral Banks 6;age @? #econd ;aragraph7 & 9>, %?>1 6By avid

Bholat of the Bank of *ngland4s !dvanced !nalytics ivision7

http'88eds.a.ebscohost.com8eds8pdfviewer8pdfviewerAsidd22eCCf>&abb2&0b?b&a1ee&

e12eedc0caf2D0?sessionmgr0??1Evid>Ehid0>?+

$0.;erficient Inc. 6/arch %?>+7 & ;age 2, ;oint >

http'88www.perficient.com8F8media8"iles8Ghite&;apers8%?>+8BigD%?ataD%?;lanningD%?3uideD%?for 

D%?"inD%?#ervD%?&D%?;!T*.pdf 

$1. Gho needs branchesA >? mobile&only banks doing it all from the app 6"ebruary %?, %?>17

https'88www.hottopics.ht8stories8finance8needs&branches&>?&mobile&banks&app8

$2. /ckinsey 3lobal Institute 6)une %?>>7 & ;age >?C

http'88www.mckinsey.com8F8media8mckinsey8dotcom8insightsD%?andD%?pubs8mgi8research8technology

D%?andD%?innovation8bigD%?data8mgibigdatafullreport.ashx

$5. *B#( database & 1 Jey Big ata hallenges in Banking Industry & #iliconindia. #eptember %?>0,

Kol. >5, Issue @, ;age +0&+1

http'88eds.a.ebscohost.com8eds8pdfviewer8pdfviewerAsid20%a?d2b&badd&0C%f&b2f+&

d%2@+C15a%e2D0?sessionmgr0??%Evid>Ehid0>?+