Deriving Business Insight from Big Data in Banking
Big data is characterized by the tremendous volumes, varieties and velocities of data, that are generated by a wide array of sources, customers, partners and regulators. Veracity is an additional dimension of big data to consider: Establishing and maintaining trust in data presents a challenge as its sources and varieties grow. Banks that can harness big data, in the form of transactions, real-time market feeds, customer-service records, correspondence and social media posts, can derive more insight about their business than ever before and build competitive advantage.
Successfully harnessing big data can help banks achieve three critical objectives for banking transformation: Create a customer-focused enterprise; Optimize enterprise risk management; and Increase flexibility and streamline operations.
IBM can help you achieve your business objectives by applying big data solutions to key business use cases. These include:
Optimize offers and cross sell
Big data capabilities provides banks the ability to understand their clients at a more granular level and more quickly deliver targeted personalized offers. This enables higher offer and cross sell acceptance rates that improve customer profitability, satisfaction and retention. While banks currently perform analysis of customer data to obtain insight to improve customer offers, many are unable to take advantage of today’s mountain of internal and external big data.
IBM’s big data solution provides the platform needed to analyze, predict and deliver more targeted, personalized and effective offers. Benefits include:
With the help of IBM, Fiserv offers more than 16,000 financial institutions the power to more accurately predict what happens next, understand customers, reduce customer attrition and increase customer adoption.
Contact center efficiency and problem resolution
Being able to anticipate your customer needs and resolve them before they become problems allows banks to deliver timely, concise and actionable insight to contact center agents. This can lead to increased sales, improved customer satisfaction and a reduction in operating costs.
IBM’s big data platform enables banks to deliver improved actionable insight during customer interactions with the contact center. Benefits include:
Payment fraud detection and investigation
Fighting fraud, financial crimes and security breaches, in all forms, is among the most costly challenges facing the finance industry. As quickly as new technology is used to identify fraudsters, they themselves are identifying new ways of defrauding financial institutions.
IBM’s big data technologies provides a scalable, integrated, secure and cost effective platform to more quickly prevent, detect and mitigate internal and external frauds. Benefits include:
IntercontinentalExchange (ICE) uses IBM Netezza to deliver same-day response to regulatory requests from the time they are traded until they actually flow through the Clearing Houses.
Counterparty credit risk management
Exploding volumes of data required for counterparty risk evaluation, combined with the need for more comprehensive and timely risk metrics, have pushed current infrastructure solutions to their limit.
IBM’s big data solution enables banks to more effectively estimate credit exposures and support OTC derivatives trading. Benefits include:
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