December 11, 2012

Study Relevant Use Cases

Pioneering financial institutions are already experimenting with new analytical strategies, and it always helps to learn from the experience of others. Consider the case of a global capital markets firm that had outgrown its technology infrastructure and was struggling with inefficient processes. Management was concerned that trading practices in the dealing room across the equities, bonds and foreign exchange desks could result in unexpected losses. They saw the potential for insider trading and other possible rogue trader scenarios and feared the reputational damage that could result from this kind of scandal. The customer implemented an integrated platform for behavior detection for trade surveillance, operational risk and compliance and business intelligence on a high performance infrastructure. Today, the firm has increased management confidence by reduced dependence on human managers in the dealing room, and gained tighter controls that reduce the risk of trading abuse.  

Expand Capabilities with the Best Technology Solution

In the era of big data, financial institutions must expand their analytical capabilities in four key ways:

• Analyze more data
• Address uncertainty in data requirements
• Respond to an increasing volume of unanticipated questions
• Produce more analytical insights in real time

The way to do this is to adopt a unified analytical platform and expand the toolkit of applications that allow an FSI to acquire, organize and analyze vast amounts of structured, semi-structured and unstructured data.

big data chart
Expanded toolkit of big data offerings
Ideally, shared building blocks common to each application ‒ such as data model, infrastructure and business intelligence layer ‒ ensure consistency, traceability and availability across the enterprise, while providing for customer-specific configuration and expansion. A unified platform should support analytical “intersections” to address emerging or overlapping analytical needs without extensive “re-wiring” and rebuilding of the supporting data infrastructure.

To ensure long-term success, the platform and applications that run on it must meet critical requirements for: • Robust processing • Unstructured analysis • Expanded event analysis • Expanded customer view • Real-time response

Big data is a new reality in financial services and it is here to stay. FSIs that embrace its potential, outline a viable strategy – which begins with a bite-sized initiative that will garner a quick and significant win – as well as understand and build a solid analytical foundation are well positioned to make the most of their big data.

S. Ramakrishnan is Vice President and General Manager, Oracle Financial Services Analytical Applications.

[5 Things To Know About Big Data]