a t t e n t i o n. a l w a y s.
WHITE PAPER
Financing the Future with
Big Data Analytics
Big Data Director:
Jayaprakash Nair
Author:
Research Analyst
Shreyasee Ghosh
Aspire Systems Consulting PTE Ltd.
60, Paya Lebar Road, No.08-43,
Paya Lebar Square, Singapore – 409 051.
C O N T E N T S
Introduction
Benefits of Stream Processing Platforms
Introducing PropelStream
PropelStream - Meeting Challenges in BFSI sector:
Enhance Customer Centricity
Fraud detection and risk mitigation
Data security
Why PropelStream?
Aspire Systems Financing the Future with Big Data Analytics 2
Benefits of Stream Processing
Platforms
The right stream processing platform would allow for
a harmonious blending of data integration together
with stream processing technologies for better
interoperability. The high-quality data output provides
for an efficient data flow thus enabling real-time
analytics for predictive and prescriptive capabilities
lending business agility and flexibility.
Leaving behind the legacy modules BFSI sector is now
embracing predictive analytics. What made this
change of scenario possible?
When it comes to digitization, financial services
among the BFSI sector are more willing to reap the
benefits of it than their other counterparts. This
sector is quite accommodating of new technology.
The fundamental reason for this is the heavy and
steady flow of information and increasing number of
sources of information. The rise in cybercrime,
fraudulent transactions and money laundering has
also fueled the automation and big data scenario in
financial sector amidst growing regulatory pressures.
Financial sector deals with varied customer bases.
High income, low income, large and small
investments, not to include the various amounts of
risks that are associated with every investment.
Adding to the challenge is changing customer needs
and high competition in the financial market. Too
many service providers are offering same services to
customers, making it difficult to retain customers and
form new customer base. In this scenario, the
financial services sector needs to be ahead of its
market demands and forecast customer needs based
on changing scenarios.
All this while maintaining data integrity from all
sources and securing vulnerable data from cyber
security breaches.
Real time stream processing analytics will not only
ensure data authenticity with integrated and
homogenized data from all sources, but it will also
give you a 360 degree view of your customers
individually, making it possible to devise services and
offers tailored from each of them.
1. Information management.
2. Market predictions.
3. Personalization.
4. Detecting and avoiding fraudulent activities.
5. Primitive digital architecture and slow progress in
digitization.
6. Compliance management.
7. Difficult customer retention due to heavy
competition.
8. Security of information, under threat of
increasing cybercrime.
9. Currency fluctuations.
10. Governance and risk management.
11. Reputation building and brand management.
Introduction
Aspire Systems Financing the Future with Big Data Analytics 3
Financing the Future with
Big Data Analytics
The rise in cybercrime, fraudulent
transactions and money
laundering has also fueled the
automation and big data scenario
in financial sector amidst growing
regulatory pressures.
(Source: Gartner)
Input
Streams
IntegrationOutput
Data Integration Functions
(Transformations, Cleansing)
Stream
Processing
Platforms
DerivedStreams
Introducing PropelStream
Aspire Systems Financing the Future with Big Data Analytics 4
PropelStream is a real time streaming analytics solution built to create and capture value from disparate sources
of data. PropelStream collects real time data from all the available sources like router switches, agents, internet
apps a variety of social channels like Facebook and Twitter. Predictive messages are then sent to receivers via
channels like mobile, file systems, fraud detection pages, and personalized offers.
Insights from data and predictive analytics that made better business possible, reduced risks and gave the BFSI
sector a contemporary turn towards data management. So far financial institutions had to spend a significant
amount of time in sorting out data scattered across departments working in silos or stored in different
warehouses. Now they can have homogenized real time data readily available from one source which is easily
accessible. Not only that, analytics has made it less costly and time consuming to find out frauds from
accumulated data by finding out patterns in unrelated data.
Predictive analytics not only gave way to redefining the way that data was used, but it also made it possible to
know your customers better.
Morgan Stanley applies big data analytics to detect anomalies in the applications and which issues to address first
with the help of predictive scenario. They also apply analytics to understand the impact of an event on the
financial market and also its root cause.
Financing the Future with
Big Data Analytics
Insights from data and predictive analytics that made better business
possible, reduced risks and gave the BFSI sector a contemporary turn
towards data management.
Aspire Systems Financing the Future with Big Data Analytics 5
PropelStream - Meeting Challenges in
BFSI sector:
1. PropelStream helps you build a proper
information management to deal with pools of
unstructured data from sources in silos. For
example a unified trade orders management
system.
2. Based on accumulated data it can give you
reliable market predictions like stock exchanges,
inflation and changing market scenario.
3. Get a 720 degree view of your customers using
data collected from internal channels like sensors
and records as well as external channels like social
networking sites. Give optimum personalization
to your offers and services.
4. Delving deep into accumulated data this stream
processing analytics can give you business
insights that find patterns in seemingly unrelated
data to detect fraudulent activity like money
laundering and false claims.
5. Avoid paying millions of dollars in fines for failing
regulatory compliances. Keep track of current
changes in real time and keep a check on
compliance management easily.
6. Retain your customers in the face of steep
competition by staying informed about the
changing market scenario with predictive
analytics.
7. Safeguard data on one secure platform in the
time of increasing cybercrime.
8. Manage risks better with a broader view of your
potential investors. Will they be a long term
customer? Would you get better returns from
them?
9. Build and manage brand reputation by
understanding customer sentiments mainly
sourcing from social networks and emails with
the help of analytics.
Financial services is a fast growing industry with a
varied customer base, handling this is the biggest
challenge of the industry. Having in depth customer
insights is a deciding factor for businesses to decide
product suitability, customize pricing and provide each
customer with personalized services. Tools like
PropelStream help you find the most relevant data
from all the assembled data. Which is the product
most popular among low income customers? How to
improve it to stay ahead in the market? Build predictive
scenarios with intuitive dashboards and take
appropriate actions to retain customers. For example in
times of inflation which product will be most beneficial
for your customers during the holiday season? Decide
appropriate credit limits for new customers, increase or
decrease limit for old customers depending on their
spending habits, payments and loyalty. Analyze
quantitative indicators for credit risk scoring, tackle the
risk of liquidity, interest and operational risk with
insights from data analytics at your fingertips.
Italian bank Credem Banca used advanced analytics to
find out which financial product or service would be
liked by a particular customer. This helps them while
targeting markets during sales. They have increased
revenue by 22 percent and reduced cost by 9 percent.
Financial services hold the high risk of fraudulent
customers and cybercrimes. From money laundering to
defaulter customers, they have to deal with it all. Since
the technological innovation that helps the BFSI sector
handle their data more efficiently, the risks have been
reduced considerably. According to EY’s Global
Forensic Data Analytics Survey 2014 showed that 72%
of respondents believed big data technologies had a
role to play in fraud prevention and detection.
Financing the Future with
Big Data Analytics
Enhance Customer Centricity
Fraud detection and risk mitigation
Italian bank Credem Banca used
advanced analytics to find out which
financial product or service would be
liked by a particular customer.
With complete control to who
accesses this data and who
doesn’t, it reduces the cost for
implementing several other layers
of data security or software
significantly.
In this day and age of regular security threats,
traditional security solutions are not enough
protection against raging cyber security threats. BFSI
sector deals with a lot of vulnerable information that,
if breached, could destroy the reputation of the
organization and lives of individuals. PCI and PII
compliance has added to the need for security of
data in the BFSI platform. Any and all financial card
providers need to keep up with the compliance for
the safe keeping of customer information. Only a
secure data processing platform can provide a
solution to this threat. Tools like PropelStream, not
only gather data from all available sources, it also
stores them in one secure platform. All operational
data, analyzed and yet to be analyzed gets stored on
this platform. With complete control to who accesses
this data and who doesn’t, it reduces the cost for
implementing several other layers of data security or
software significantly.
Data security
Real time analytics like PropelStream gives you
accurate knowledge of details like eligibility criteria
for mortgage, tracking defaulter customers or
potential customers with the high risk of defaults and
helps mitigate risks. Find out if your potential
customer has had made false claims in the past,
whether he/she was involved in any fraudulent
activity or money laundering before you invest.
If a credit card holder is supposed to be stationed in
the United States and her card is being used
somewhere in UK, with the help of geo location and
time the card provider can find out with the help of
data analytics, whether their customer is a victim of
fraud or not.
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Financing the Future with
Big Data Analytics
Reliability of data insights increase with advanced
analytics. PropelStream would process high volumes
of data in real-time at reduced cost for you to find
out financial performances of your products and
services on your own. With the help of self-help data,
you just need a mobile rather than a bunch of data
scientists to get the results you require to take your
next big business decision.
Why PropelStream?
Aspire Systems Financing the Future with Big Data Analytics 7
Financing the Future with
Big Data Analytics
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References
ABOUT ASPIRE
Aspire Systems is a global technology service firm serving as a trusted technology partner for its customers. The company
works with some of the world’s most innovative enterprises and independent software vendors, helping them leverage
technology and outsourcing in Aspire’s specific areas of expertise. Aspire System’s services include Product Engineering,
Enterprise Solutions, Independent Testing Services, Oracle Application Services and IT infrastructure & Application Support
Services. The company currently has over 1,600 employees and over 100 customers globally. The company has a growing
presence in the US, UK, Middle East, Europe and Singapore. For the sixth time in a row, Aspire has been selected as one of
India’s “Best Companies to Work For” by the the Great Place to Work® Institute, in partnership with The Economic Times.
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