The CoDE team’s Roger Maull, Professor of Management Systems in the Surrey Business School, was a featured panellist at the ‘Big Data in Banking’ Talend-Roundtable Event in London. Under discussion: Are legacy systems holding banks back from innovating?
According to a new industry survey by Talend, 48% of banking industry professionals polled cite the limits of legacy systems as the number one IT challenge facing the sector, with 43% also naming it as the main barrier to realising the benefits of big data analytics.
Other key findings of the research, for discussion, included:
- 64% of banks are currently using big data in some way and a further 15% are actively considering investing in big data analytics. Has the argument about whether or not to implement big data projects already been won?
- 75% of business leaders claim their firms are well advanced in using big data, compared to just 30% of junior managers/professionals. Is there a disconnect between implementation professionals and senior execs?
- 54% of banking professionals see compliance and regulations as the number one business challenge that they face today. How can big data and data quality tools alleviate this challenge?
- Developing new revenue streams is a challenge for 46% of professionals. Does big data hold the insights to what customers really want and need?
- The rise of mobile and internet banking is a major challenge for 46% of professionals. How can big data be used to innovate offerings in these channels?
According to Maull, ‘It’s surprising how many banks are not using big data. By using big data effectively, the banking industry could be acting on much more than just the transactional data that limits their understanding to what we are buying – rather than why we are buying.’
With this information, financial services could potentially:
- Supply analytical services to retailers;
- Better identify risk associated with lending to certain people;
- Put together a single-view database which would give much better insight, and could offer a far more responsive and individual service.
The solution? According to Maull, the banking industry should be linking to HAT, the Hub of All Things, to find the personal data they need to evolve their service.
HAT is a platform for a multi-sided market, powered by the Internet of Things. The HAT project is looking at: understanding context and lived lives; new economic and business models; the future of connected things in the home; personalised products and services; data ownership and empowerment of the individual in a fully connected digital world.
High street banks are increasingly under threat from rival ‘challenger banks’ entering the market. As younger, smaller organisations, these challengers find themselves better positioned to innovate without the restrictions their more established competitors face.
Rapid innovation in a digital economy is one of the issues the CoDE team is studying.
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