Big Data – A real phenomenon or consultant buzzword for analytics?
In 2011, the global output of data reached an astounding 1.8 zetabytes, each zetabyte equalling 1 billion terabytes. 90% of our world's data today was created within the last two years. Big data – a term coined to describe the proliferation of data available to banks, in volume, velocity and variety, is said to offer them opportunities to increase their revenue by having a better understanding of their customers. In the digital world today, banks have access to an avalanche of data coming from both internal and external sources: social media, customer-bank interaction over mobile devices, personal computers, table computers, live call centre recordings, etc. Banks are then faced with a challenge of ploughing through and analysing the data. Viewed more positively, this presents a golden opportunity for banks to get ahead of their competitors, when they are able to provide excellent and targeted service to their customers, having gained insights about each.
Much has been debated and discussed over the controversial topic of big data. Many are of the opinion that this phenomenon is but a consultant buzzword for analytics, especially in the region of Asia. Banks in Asia are growing at a rapid pace, but have yet to reach the gargantuan size of their counterparts in the West. Furthermore, the Asian market tends to be more conservative, still having reservations about stepping away from the conventional over-the-counter banking. This school of thought privately considers the big data hype as a vendor and consultant driven tool for them to drive their marketing campaigns, with the aim of getting banks to invest millions of dollars in infrastructures that the bank doesn't really need yet.
The Asian Banker would like to hear your views on this topic, whether you agree or disagree with the motion. Vote and contribute your thoughts to be part of this debate. Read opinion articles from our highly distinguished guests published by us. We will conclude the debate with a teleconsultation session on the 12th of April.
All Comments (7)
Banks always had more data than other domain due to the extensive use of technology in transaction processing and customer services. As more customer convenience is provided using newer channels more dta flows in. More effective analysis of these data will equip banks to be more customer centric and efficient in transaction processing... U V K Kumar
4th April 2012 07:58 PM
It is surely a consultant buzz word. If banks have Big Data, then what do you call the data being generated at CERN. Banks need business solutions at the front end.
30th March 2012 02:37 PM
The Data phenomenon comes with it challenges - is the data in line to support business strategy, is there understanding of how and where to use the data by the emplpoyees and does the bank have the appropriate skilled analysts to meaningfully translate data into strategy.
18th March 2012 12:02 PM
Not yet for this region at least not Asia Pacific. Banks are growing, should focus on people development and governance to align with the growth, before taking the next step to look at not-yet-oxygen big data analysing. The so called growth is a baby step as compare to other regions like US and Europe, even Australia.
7th March 2012 07:27 AM