Page 135 - Building Big Data Applications

Chapter 7 Banking industry applications and usage 133

multiple channels across eBanking. Further goals are increased profitability per
customer for both microcustomerand macrocustomer populations with the ulti-
mate goal of increasing customer lifetime value (CLV). This needs to be planned
with reduction of physical locations like ATM or Service branches, which drain into
the existing profit margins. The eBanking range of services will generate more data
and activity tracking which can be completed successfully.
Capital marketsdCapital market firms need to create new business models and
offer more efficient client relationship services based on their data assets. Those that
leverage and monetize their data assets will enjoy superior returns and raise the bar
for the rest of the industry. The most critical step is the maturity journey with ana-
lytics is to understand all their clients from a 360-degree perspective so they can be
marketed to as a single entity across all channels of engagement, which is a key to
optimizing profits with cross-selling in an increasingly competitive landscape.
Wealth managersdThe wealth management segment (e.g., private banking, tax
planning, estate planning for high net worth individuals) is a potential high growth
business for any financial institution. It is the highest touch segment of banking,
fostered on long-term and extremely lucrative advisory relationships. It is also the
segment most ripe for disruption due to a clear shift in client preferences and ex-
pectations for their financial future. Actionable intelligence gathered from real-time
transactions and historical data becomes a critical component for product
tailoring, personalization and satisfaction.
Corporate bankingdThe ability to market complex financial products across a global
corporate banking client base is critical to generating profits in this segment.
Analytical models will be useful to engage in risk-based portfolio optimization to pre-
dict which clients are at risk for adverse events like defaults. In addition to being able
to track revenue per client and better understand the entities they bank with, we need
to provide the compliance needs to track AML, which is an international mandate.

The customer journey and the continuum
Across retail banking, wealth management and capital markets, a unified view of the
customer journey is at the heart of the bank’s ability to promote the right financial
product, recommend a properly aligned portfolio products, keep up with evolving
preferences as the customer relationship matures and accurately predict future revenue
from a customer. Today this aspect of integration of the customer and providing a single
view across all channels of engagement has been adopted and become a key trans-
formation in banking. We can easily visualize the activities across connected accounts
and all investment, credit cards, and manage wire transfers and payments from one
application. Leveraging the ingestion and predictive capabilities of a big data platform,
banks can provide a user experience that rivals Facebook, Twitter, or Google and provide
a full picture of customer across all touch points. Is all this data connected seamlessly at
the backend? The evolution is happening and will be a new standard by 2025.