Big Data in Banking

((o) BIG DATA in banking THE BANKING BUSINESS FINDS A NEW ASSET WHICH WOULD EQUATE TO U.S. banks currently 1 1 of stored have Exabyte data 275 billion mp3's Typical banking sources of BIG DATA include ulı Customer bank visits Call logs Web interactions Credit card histories Social media Transaction types Banking volumes How banks put BIG DATA to work Anti-money laundering Stock trade Customer risk Compliance and regulatory reporting Customer relationship procedures surveillance and assessment management and fraud detection pattern analysis BIG DATA problem solving for financial institutions Preventing Customer Churn Setting Effective Staffing Levels In 2012 Staffing costs account for 50% 66% of a branch bank's costs Of coustomers changed banks or were planning to change banks SOLUTION SOLUTION Staffing models based on A customer churn prediction model based on big data analysis of social media customer sentiment and transaction times and account holder traffic patterns data make annual resource planning easier purchasing power helps identify customers at risk of leaving and more effective Understanding Customer Needs Managing Rising Security Costs Customers face a bewildering number of banking “journeys" through websites, call centers, branch bank personnel and more More stringent federal security regulations require banks to have safeguards for anti-money laundering in place SOLUTION SOLUTION Big data from customer waiting and Y assist periods and online banking habits helps track the paths customers follow and how they affect purchasing decisions Big data from cross channel security alerts and international money transactions creates compliance analytics for performance models that reduce alerts while delivering ongoing monitoring Insights for Product Development Scoring Credit Risks NEW Banks need to cut lending risks The costs of developing new prod- ucts and services can be staggering while improving customer marketing SOLUTION SOLUTION Consumer payment patterns and law enforcement databases supply the data Customer transactional data such as timing of visits and duration of teller transactions can be analyzed to find gaps in product offerings credit bureaus store over 800 billion records to be sliced, diced and analyzed for more accurate credit risk scores. For comparison, the FBI's Investigative Data Warehouse has only 1.5 billion documents. >Alacer www.alacergroup.com 1. McKinsey Global Institute | 2. 2012 Global Consumer Banking Survey, Ernst & Young | 3. Bancography | 4. International Institute of Analytics, 2013 | 5. ACLU %24 %24