Trends, challenges and the road ahead

Big data in the financial industry

18 March 2015

Jonas Bergstrom

Market Manager

Business Intelligence Solutions

In the news

What is it really about?

• Organisations are increasingly seeing data as a core

asset

• How to generate growth from these data assets?

• “Financial services businesses are… working toward a

greater emphasis on decision-making that is based on

the actionable insights generated from their data”*

*Source: EY 2014

Trends in the financial industry

• Aggressive investment in technology

• Analytics initiatives driven by IT

Reporting & analysis

Customer profiling/profitability analysis

Risk management

Regulatory compliance

Risk management

Finance

Sales

Marketing

Top analytics applications

in banking Main data investment priorities

last two years

*Source: EY 2014 *Source: Aberdeen Group 2013

What is the return on investment?

• Recent survey: 52%* of

bankers are dissatisfied with big

data technologies

• Data warehousing/

management is also source of

strong dissatisfaction

• Great analytics delight the

customer!

• Improve customer metrics

On the one hand… But on the other…

*Source: AITE Group survey 2014

-6%

-4%

-2%

0%

2%

4%

6%

8%

Market share Cross-sell and up-sell revenue

Customerattrition

Imp

rove

me

nt

%

Customer analytics No customer analytics

*Source: Aberdeen Group 2013

Challenges

Generating

growth from

analytics

Reluctance to new analytics investments

Compliance still a key

priority

Enabling business-

driven analytics

Analytics and data privacy

Reputational risks Legal risks

Data governance

The road ahead

Customer centric analytics serving all departments

Successful projects driven by business needs

• Start small, expand as you succeed

• Focus on tangible returns

Two main developments

• Self-service analytics using easy-to-use tools

• Analytics “applications” for targeted purposes

How is SWIFT responding to the trends?

• Leveraging SWIFT data assets to support the community

New!

SWIFT Watch Finding attractive Trade Finance opportunities

Asia-PacificEurope - Non

Euro ZoneMiddle East

AfricaEurope - Euro

Zone Central &Latin America North

America

179,308,347

615,055,445

149,466,580 238,833,249

54,476,035

21,542,637 7,301,735

1,277,927,352

307,538,918 535,691,128

199,272,534

148,477,033

17,980,134 18,884,017

CONFIRMED NOT CONFIRMEDExample: LC’s sent from the world to Country A per georegion

Confirmed vs. non-confirmed

Letters of Credit

SWIFT Scope End-to-end real-time business intelligence solutions

Messaging & FINInform

Automated real-time copy

of selected SWIFT traffic

with transaction details

Customer HQ • Database storage

• Customer owner-

ship of private

data

SWIFT Scope • Analytics

• Reports

• Dashboards

• Global branch network

• Domestic banks

• Specific counterparties

SWIFT Scope usage examples

Central Banks Global Transaction

Banks Intraday Liquidity

Reporting

• Automated

regulatory reporting

• Economic insights

• Customer analytics

• Business development

• Support to comply

with BCBS Intraday

liquidity rules

6 live customers

Under development

SWIFT Reference data Using reference data to enrich your analysis

List of all LEIs and attributes

List of all BICs and attributes

List of all GIIN codes for

FATCA

Entity

LEI

GIIN

BIC MIC

BRN Available Q2 2015

Entity Plus

BRN = Business registration number

LEI = Legal Entity Identifier

MIC = Market Infrastructure code

GIIN = Global Intermediary id number

BIC = Business Identification Code

SWIFT Reference data Using reference data to enrich your analysis

Entity identifier Identity

type Country

Code Entity

KGCEPHLVVKVRZY

O1T647 LEI BE

BNP Paribas Fortis

s.a./n.v.

1G159I.00269.ME.056 GIIN BE BNP Paribas Fortis SA-

NV

GEBABEBBXXX BIC BE BNP PARIBAS FORTIS

(FORTIS BANK SA/NV)

BE0403.199.702 BRN BE BNP Paribas Fortis

SA/NV

Entity Plus: One entity, many identifiers

One and the same entity

Summary

• Analytics can be a growth generator in the financial

industry

• New projects must deliver tangible returns

• Successful analytics is business driven

• SWIFT is leveraging its data assets to support the

community

Questions & Answers

Contact details:

Jonas Bergstrom Market Manager

Business Intelligence Solutions

SWIFT Avenue Adèle 1

B-1310 La Hulpe

Belgium

+32 2 655 4736

+32 488 37 87 35

jonas.bergstrom@swift.com

www.swift.com

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