Data Management

10:00 AM
Srinivas Prabhala and Sastry K.V.S.N.
Srinivas Prabhala and Sastry K.V.S.N.
Commentary
50%
50%

Three Steps You Need To Take To Tame The Data Dragon

As the data dragon continues to grow, there is a pressing need for organizations to begin to use analytics to better manage their data, write Srinivas Prabhala and Sastry K.V.S.N of Infosys.

Data in most banks is taking a life of its own and transforming into a proverbial dragon. The dragon is growing, and growing fast. Most analysts agree that it is growing at an astounding rate of 40 percent to 50 percent annually. Interestingly, the growing data dragon is multi-faceted; both in terms of volume as well as variety.

Customers are also feeling the effect of the “data deluge.” They have access to a plethora of comparative information of product offerings across competitors and through multiple channels. This has put tremendous pressure on banks to react quickly and provide solutions/offerings that are more personalized.

Thus, there is a very clear and obvious need for the banks to tame the data dragon and leverage it towards providing better products and services to its clients. The key to taming the dragon is to understand it. Analytics is a useful tool, which will aid in the process of utilizing data to understand the customers’ actions/behavioral patterns and to convert that data into actionable insight.

Most successful banks have been leveraging analytics to some extent, whether being utilized for campaign response modeling, churn prediction, social CRM and web analytics, for example.

However, given present day technologies, there are many additional areas where data analytics would prove beneficial. The process of effectively taming the data within an organization consists of three major phases, which are, “prepare” (the process of gathering relevant data across the various sources, both internal and external), “process” (applying various analytics techniques on the data) and “present” (process of presenting the results of the analysis to facilitate decision making).

Prepare: There is data available within an organization, which is specific to its customers and to the interactions between the organization and its customers. There is also data available which is external to the organization. This data, for instance, includes stock quotes, customer credit ratings, and customer sentiment data from social media.

Banks first need to identify the sources of data that they would like to analyze. It is important to understand that not all data available within or outside of an organization can be consumed directly. There is a need for organizations to validate that the data being used is correct. In order to validate the data, there are multiple data quality tools and technologies available to the organization. This includes tools from vendors like IBM, Informatica, Trillium and Dataflux.

Other than the conventional Extract, Transform and Load (ETL) tools, that are currently in extensive use, there are tools to help consolidate data across multiple disparate sources in real-time. These data sources can be as diverse as databases, mainframe files, web services, information on the Internet and data on desktops within Microsoft Excel. This type of technology is known as Information-As-A-Service (IAAS) and is supported within ETL offerings by vendors like IBM and Informatica; there are also others like Denodo and Composite who have support for these capabilities.

Previous
1 of 2
Next
Comment  | 
Print  | 
More Insights
More Commentary
Gartner: 75% of Mobile Apps Will Fail Security Tests Through 2015
The rise of BYOD means enterprises must implement security testing and containment solutions, according to new Gartner research.
Chip & Pain, EMV Will Not Solve Payment Card Fraud
Switching to EMV cards will lower retail fraud, but it's not enough. Here's the good, the bad, and the ugly.
With UCITS V, $9T Isnít as Easy as It Used to Be
With UCITS V's restrictive remuneration rules and hidden costs, going global may get a little less attractive.
Banks to Increase IT Spend on Big Data Challenges, Finds Aite Report
Big data has presented the greatest challenges and dissatisfaction for banks, yet it is the most likely to see upward spending in the next two years.
Scotland Independence Vote: Haggis & Fragmentation
Scottish independence has far-reaching consequences for the global financial markets.
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - July 2014
In addition to regular audits, the SEC will start to scrutinize the cyber-security preparedness of market participants.
Video
5 Things to Look For Before Accepting Terms & Conditions
5 Things to Look For Before Accepting Terms & Conditions
Is your corporate data at risk? Before uploading sensitive information to cloud services be sure to review these terms.