Most investment banks are now looking at how they can use big
data to do what they do better, faster and more efficiently.
Now while banks have, for many years, used data and value at
risk modeling to measure and quantify the level of financial risk in a
portfolio of assets, the fundamental difference with big data is that it has
become an established standalone functional department rather than a series of
small subsets of internal business units.
Another key difference is that the banks are now not only analyzing
structured data, such as market or trading data, but also unstructured data,
which can include sources such as tweets, blogs, Facebook posts and marketing
material.because the data they are looking
at is structured and semi-structured and include website clicks, transaction
records, bankers’ notes and voice recordings from call centers study shows that the banks are
getting better at understanding common journeys, monitoring for quality of
service and identifying reasons for attrition.
Big data is also a fundamental element of risk-profiling for
the banks, enabling data analysts to immediately assess the impact of the
escalation in geopolitical risk on portfolios and their exposure to specific
markets and asset classes. Specifically, banks have now built systems that will
map out market-shaping past events in order to identify future patterns.
Unlike retail and technology giants such as Google, Facebook
and Amazon, or any new startup company, the IT and data systems at most banks
were not originally constructed to analyse structured and unstructured data.
Updating and remodeling entire IT and data systems to accommodate the systems
needed to generate a deep analysis of a bank’s data is time-consuming and
costly.
Before big data was tamed by
technology, Most Banks relied on sample as the usual approach to understanding customers.
But with big data technology, Banks can increase the process and analyze data
from its full customer data base.
It Is Interesting to note that while a lot of big data
talk is about unstructured data or social media analysis, banks seems to have
plenty of work just to understand the mostly structured data they already have
and generate daily.
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