7 Big Data Analytics Use Cases for Financial Institutions

Big Data Analytics
Big Data Analytics

Recently we hear a lot about Big Data Analytics‘ ability to deliver usable insight – but what does this mean exactly for the financial service industry?

While much of the Big Data activity in the market up to now has been experimenting about Big Data technologies and proof-of-concept projects, I like to show in this post seven issues banks and insurances can address with Big Data Analytics:

1. Dynamic 360º View of the Customer:
Extend your existing customer views by incorporating dynamic internal and external information sources. Gain a full understanding of customers – what makes them tick, why they buy, how they prefer to shop, why they switch, what they’ll buy next, and what factors lead them to recommend a company to others.

2. Enhanced Commercial Scorecard Design and Implementation:
Financial institutions use Big Data solutions to analyze commercial loan origination, developing scorecards and scoring, and ultimately improving accuracy as well as optimizing price and risk management.

3. Risk Concentration Identification and Management:
Identify risk concentration hotspots by decomposing risk into customized insights. Clearly see factor contribution to risks and gain allocation consensus through downside risk budgeting.

4. Next Best Action Recommendations:
Make „next best action“ an integral part of your marketing strategy and proactive customer care. With analytical insight from Big Data, you can answer such questions as: What approach will get the most out of the customer relationship? Is selling more important than retention?

5. Fraud Detection Optimization:
Preventing fraud is a major priority for all financial services organizations. But to deal with the escalating volumes of financial
transaction data, statisticians need better ways to mine data for insight. Optimization for your current fraud detection techniques help to leverage your existing fraud detection assets.

6. Data and Insights Monetization:
Use your customer transaction data to improve targeting of cross-sell offers. Partners are increasingly promoting merchant based reward programs which leverage a bank’s or credit card issuer’s data and provide discounts to customers at the same time.

7. Regulatory and Data Retention Requirements:
The need for more robust regulatory and data retention management is a legal requirement for financial services organizations across the globe to comply with the myriad of local, federal, and international laws (such as Basel III) that mandate the retention of certain types of data.

What is the Best Onshore/Offshore Ratio for Consulting Firms?

Challenges and potential of the extended usage of offshore resources for consulting firms
Screenshot of Onshore/Offshore Ratio survey

At the time of a new engagement, managers take into consideration many activities like project planning, effort estimation, defining goals and metrics, cost, outcome, etc. One factor that is most important for any project to succeed is engaging the right onshore/offshore staffing ratio to execute the project. This factor is mostly not given adequate importance in many recent delivery models. For managers to meet project profit margins, they try to limit the cost spent on project resources and execution. With the limited resourcing budget, it is not feasible to have a default onshore/offshore ratio that fits all projects.

After gathering some experience in working offshore (2007-2008 in Bangalore, India) and onshore (in Germany and Switzerland) I started to wonder if there is a optimal onshore/offshore ratio. Quite soon I concluded that this question is not easy to answer. So I did a breakdown to certain aspects and instead of answering them by myself, I set up a survey and hope to get your support!

Start the survey: http://bit.ly/offshoreratio
[Update 15 Nov 2014]: After collecting data over four weeks (18 Oct – 14 Nov), the survey is closed. Results will follow soon.

Basically, I’d like to address three groups to answer this survey:

  • Employees of traditional consulting firms
  • Employees of Indian pure players (such as Infosys, TCS, HCL, Wipro, etc.)
  • Employees of clients of consulting firms

Of course, I’m going to share the results after evaluation. Thank you for participating and sharing the link with your colleagues! Also retweets are highly appreciated…

India still the Top Destination for Outsourcing

SAP Labs India Pvt. Ltd. in Bangalore
SAP Labs India Pvt. Ltd. in Bangalore

Asian countries, especially countries in South Asia and Southeast Asia, keep on being favored picks among organizations interested in contract out business processes offshore. India remains the top outsourcing destination, with its unrivaled advantages in scale and people skills, said the 2014 Global Services Location Index (GSLI) released by A.T. Kearney. China and Malaysia are second and third respectively.

The GSLI, which tracks offshoring patterns to lower-cost developing countries and the ascent of new locations, measures the underlying fundamentals of 51 nations focused on measurements in three general classifications, such as financial attractiveness, people skills and availability, and business environment.

Distributed since 2004 the GSLI, revealed that leading IT-services companies in India, to whom IT-related functions were outsourced, are extending their traditional offerings to incorporate research and development, product development and other niche services. The line between IT and business-procedure outsourcing there is obscuring, as players offer packages and specialized services to their customers and are developing skills in niche domains.

Furthermore, the GSLI identified a trend of multinationals reassessing their outsourcing strategies, after having aggressively outsourced back office operations in the mid-2000s; it has been noted that some companies are starting to reclaim some of these functions and undertaking them in-house again.

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The Forbidden City: Walking Through China’s Imperial Past

The Hall of Supreme Harmony, a stunning testament to imperial grandeur in the Forbidden City.
The Hall of Supreme Harmony, a stunning testament to imperial grandeur in the Forbidden City.

Our Beijing journey would be incomplete without a visit to the Forbidden City, a colossal monument to China’s imperial history. For nearly 500 years, this vast complex was the epicenter of political power in China, home to 24 emperors of the Ming and Qing dynasties. Today, it stands as a testament to China’s rich heritage, offering visitors a glimpse into the grandeur and mystery of the past.

Exploring the Forbidden City

Entering through the imposing Meridian Gate, we were immediately struck by the sheer scale of the Forbidden City. Covering over 180 acres, it’s easy to see why it was once considered a “city within a city.”

  • The Outer Court: The first section we explored was the Outer Court, where state affairs were conducted. The three main halls—Hall of Supreme Harmony, Hall of Central Harmony, and Hall of Preserved Harmony—are aligned in perfect symmetry. Each hall is an architectural marvel, adorned with intricate carvings and gilded roofs that shimmer under the sun. The marble terraces and ornate balustrades are reminders of the opulence that characterized the imperial court.
  • The Inner Court: Moving further inside, we reached the Inner Court, where the emperor and his family lived. The Hall of Mental Cultivation, where emperors once deliberated on state matters, and the Palace of Heavenly Purity, their living quarters, are both fascinating insights into the daily lives of China’s rulers. The well-preserved artifacts, including jade carvings, silk robes, and ancient scrolls, offer a vivid picture of life within these walls.
  • The Imperial Garden: After a day of exploring grand halls and corridors, the Imperial Garden was a peaceful retreat. With its ancient cypress trees, ornate rockeries, and beautiful pavilions, it’s easy to imagine the emperors and their concubines strolling through this serene landscape.
Beijing, China

Practical Tips for Visiting

  • Start Early: The Forbidden City is vast, and it’s best to start early to avoid the crowds. Plan to spend at least half a day here to truly appreciate its beauty.
  • Wear Comfortable Shoes: You’ll be walking a lot, so comfortable footwear is a must.
  • Hire a Guide: The history of the Forbidden City is incredibly rich. A knowledgeable guide can bring the stories of the emperors and their court to life, making your visit much more meaningful.
  • Book in Advance: The Forbidden City is one of Beijing’s most popular attractions, so it’s wise to book your tickets online in advance.
Beijing, China

The Forbidden City is not just a historical site; it’s a journey through China’s imperial past, a place where history and architecture intertwine to create a mesmerizing experience. As we exited through the northern gate, we were left in awe of the incredible legacy that this site represents. Don’t miss our earlier posts on exploring Beijing’s vibrant food scene at Wangfujing Night Market and our adventures in the Beijing’s alleyways.

Wangfujing Night Market: Dare to Dine on the Wild Side

Skewers of scorpions and seahorses ready for daring diners at Wangfujing Night Market.
Skewers of scorpions and seahorses ready for daring diners at Wangfujing Night Market.

Beijing is a city of contrasts, and nowhere is this more evident than at the Wangfujing Night Market. Nestled in the heart of Dongcheng, this bustling street market is famous—or infamous—for its daring array of street food. From scorpions wriggling on a stick to starfish and seahorses, this is the place to challenge your culinary boundaries.

A Feast for the Brave

As we wandered through the neon-lit stalls, the air filled with the sizzle of frying oils and the pungent aroma of exotic spices, we found ourselves face to face with some of the most unconventional delicacies Beijing has to offer:

  • Scorpions: These critters, skewered and wriggling, are perhaps the market’s most iconic offering. While you can choose to have them fried, for the truly adventurous, eating them alive is an experience that tests both courage and palate. Surprisingly, they have a crunchy texture and a slightly nutty flavor.
  • Seahorses and Starfish: These ocean creatures are also served on skewers. The starfish, with its tough exterior, is more for the experience than the flavor, but it’s definitely Instagram-worthy!
  • Silkworm Pupae: Despite their intimidating appearance, these small, thick bugs have a soft, slightly chewy texture and a flavor reminiscent of earthy mushrooms. They are considered a protein-packed snack.
  • More Delicacies: Don’t stop there—try the centipede, octopus tentacles, duck tongues, and chicken hearts. Each offers a unique taste and texture that’s sure to make your visit to Wangfujing unforgettable.
Watch as we explore the daring eats of Beijing’s Wangfujing Night Market—scorpions and seahorses wriggling on a stick! Dive into one of the city’s most unforgettable food experiences in our YouTube video.

Tips for Navigating the Market

  • Be Adventurous: This market is not just about eating—it’s an experience. Bring an open mind and a strong stomach.
  • Bargain: Most items are affordable, ranging from 10 to 30 CNY per skewer. It’s customary to haggle a bit. This is all part of the fun.
  • Cultural Sensitivity: While it’s a thrill for tourists, remember that many of these foods have cultural significance. Approach with respect and curiosity.

Wangfujing Night Market is not just a place to eat; it’s a sensory adventure that challenges you to push your culinary boundaries. Whether you’re a foodie or just curious, this is a must-visit spot in Beijing. And after braving the night market, join us as we explore the Forbidden City in our next post.