Big Data – Uncovering Hidden Business Value in the Financial Services Industry Authors ¬ Dr. Karl Rieder, Dr. Ignasi Barri and Josep Tarruella
¬ Version 1.0 ¬ Published: September 2014
© GFT Technologies AG 2014
Table of Contents 1
Executive Summary ..................................................................................................................................... 4
2
Introduction................................................................................................................................................... 5
2.1
So what is big data? .................................................................................................................................... 5
2.2
It’s a big data world ..................................................................................................................................... 6
2.3
The financial services industry today .......................................................................................................... 6
2.4
Big data adoption by the numbers .............................................................................................................. 8
3
Big data opportunities in the financial sector ......................................................................................... 10
3.1
Retail banking ............................................................................................................................................ 10
3.2
Investment banking ................................................................................................................................... 14
3.3
Insurance ................................................................................................................................................... 17
3.4
IT efficiency ............................................................................................................................................... 19
4
The architecture of big data solutions ..................................................................................................... 20
4.1
Big data technologies ................................................................................................................................ 20
4.2
Commercial appliances ............................................................................................................................. 23
4.3
Impact on existing systems ....................................................................................................................... 23
4.4
Cloud architectures ................................................................................................................................... 24
5
Addressing big data’s challenges ............................................................................................................ 25
5.1
Technology ................................................................................................................................................ 25
5.2
Security and data protection...................................................................................................................... 26
5.3
Data quality................................................................................................................................................ 26
5.4
Internal organisation .................................................................................................................................. 27
Big Data – Uncovering Hidden Business Value in the Financial Services Industry | © GFT Technologies AG 2014
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6
First steps ................................................................................................................................................... 29
6.1
Getting started ........................................................................................................................................... 29
6.2
Establishing new roles in the company ..................................................................................................... 31
6.3
Strategies to follow – lessons learned from successful big data projects ................................................. 32
7
GFT’s Big Data practice ............................................................................................................................. 34
About the authors ............................................................................................................................................. 35
This report has been published based on a number of interviews with industry experts, secondary market research, and GFT’s internal expertise. The intention of the report is to render industry trends transparent and understandable within their context and to give readers ideas for their businesses. The content has been created with the utmost diligence. Therefore, we are not liable for any possible mistakes. GFT Technologies AG Executive Board: Ulrich Dietz (CEO), Jean-François Bodin, Marika Lulay, Dr. Jochen Ruetz. Chairman of the Supervisory Board: Dr. Paul Lerbinger Commercial Register of the local court (Amtsgericht): Stuttgart, Register number: HRB 727178 Copyright © 2014 GFT Technologies AG. All rights reserved.
Big Data – Uncovering Hidden Business Value in the Financial Services Industry | © GFT Technologies AG 2014
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1
Executive Summary
Between now and 2020, the digital universe will double in size every two years. Businesses are projected to increase their investment in hardware, software, and services by 40% between 2012 and 2020 to keep up with this expansion1, and the data-driven financial sector is likely to be strongly impacted. Banks will be looking to use new technology to remain competitive in the face of a rapidly diversifying financial services landscape. Investment in big data technologies will grow even faster, given the massive evolutionary leap it represents in shifting IT focus from relational databases to more open and flexible platforms that enable the management of huge volumes of data and provide new analytical and actionable capabilities. The key challenge will be to employ these technologies in such a way that they meet IT needs and at the same time provide new value to the business, delivering a real return on that investment in the form of an improved bottom line. Big data technologies will enable broader and better data analysis than ever before, leading to targeted eventdriven, customer-centric marketing, improved fraud detection, better Agility is key for success in the 21st century
risk calculation, and operational efficiencies. Agility is key for business success in the 21st century, and the effective deployment of big data
projects is likely to be the difference between success and failure in an ever more competitive market. This blue paper is a guide to the opportunities, requirements, and challenges of the big data revolution, revealing the value that can be tapped from big data technologies. In Big data success requires new skill sets and processes as well as technology
making the shift to the brave new world of big data, the financial services sector will need to consider not only technology changes, but new use cases, processes, and skill sets. The paper also includes a
set of recommendations that will help financial services organisations to successfully implement big data technologies.
1
IDC Study Dec 2012: The Digital Universe in 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East
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