DEFINE BIG DATA & IOT IN BANKING
Banks hold some of the most personal information about its customers. Although it may seem like just another daily transaction on one’s bank statement, this is a very useful piece of data for banks. Traditionally, banks were used to store customer’s money and allow access at a customer’s demand. The banking industry has evolved tremendously in that it now offers any type of financial product a customer may need. A customer can establish a myriad of financial products such as a credit card, a mortgage, an auto loan, an insurance policy, and investment accounts all within one financial institution. A lot of information must be gathered by customers in order to establish the different types of products offered. This is where the concept of big data plays a big role in banking. Because banks’ capability to establish multiple accounts for multiple products for a customer, big data has made its way into the world of financial services. According to an article by bankingtech.com, “the value of Big Data to the retail banking industry is
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The term “silo” was coined to refer to the fact that each department within an organization has specific data about a customer only visible to that department. Another barrier is the fact that most banks do not have the staff with the skill set to properly identify and analyze big data. Yet another issue was the fact that banks do not have the strategic focus on big data. Most importantly, privacy concerns also play a big role in banks’ reluctancy to use big data full force. An example given in the study mentions a security breach at a United Kingdom bank where thousands of customer databases were exposed containing personal information regarding customer’s financial
The author appear to be moderately perplexed by the fact that American state that they are concerned about privacy but they yet disclose personal information to entities. I would offer that the reason many are disclosing the information, is that business will not offer their services or product without the personal information. One can go to another vendor for service, only to have the same problem repeated. Now what is perplexing, is the authors claim that “a significant number, 11%” (Caftori & Teicher, 2002) of the population believes that corporate owners should go to prison for violations of information privacy. I must say, I never thought of 11% of a population as a significant percentage, but I am just a student. More confusion for the authors is when a computer system that handles big data has faulty output. They use the analogy of an airline, and if they lose your luggage and should receive compensation, but this is not the case when the DMV provides faulty data. This should not be perplexing, with the airline an explicit contract is made with the purchase of the ticket. The airline is transport my body and my luggage to the agreed location without damage or loss. Luggage is tangible. The contents are worth x amount of dollars and the airline pays the individual
According to Lisa Arthur, big data is as powerful as a tsunami, but it’s a deluge that can be controlled. In a positive way it provides business insights and value. Big data is data that exceeds the processing capacity of conventional database systems. It is a collection of data from traditional and digital sources inside and outside a company that represents a source of ongoing discovery and analysis. The data is too big, moves to fast, or doesn’t fit the structures of the database architecture. Daily, we create 2.5 quintillion bytes of data. In the last couple years we have created 90% of data we have in the world. This data comes from many places like climate information, social media sites, pictures or videos, purchase transaction records, cell phone GPS signals, and many more places. From the beginning of recorded time through 2003 users created 5 billion gigabytes of data. 2011, the same amount was created every couple days. 2013, we created that same amount every ten minutes. Some users prefer to constrain big data into digital inputs like web behavior and social network interactions. The data doesn’t exclude traditional data that is from product transaction information, financial records and interaction channels.
In recent years, Internet banking, namely, online banking means the transitions of banking activities including checking account information and payment of bills through a website (Chavan ,2013, cited Singhal and Padhmanbhan, 2008; Ahasanul et al, 2009), is popular in the world. According to Abdou (2014), in the UK, the number of online banking users has increased from 63% to 70% between 2011 and 2012. Online banking is beneficial for consumers to monitor their account information (Hettiarachchi, 2014), and saves time to transferring funds (Lichtenstein and Williamson, 2006). However, Littler and Melanthiou (2006) point out that internet banking is not completely safe, and faces
Each day, billions of people worldwide depend on the security of digital systems. From medical history and test results at a hospital, to financial information and account statements at a bank, or social connections and personal messages on a smart phone, nearly every facet of a person’s life has some component of personal data associated with it that is stored on a computer. Furthermore, new forms of personal data to collect are being identified, gathered, analyzed, and stored all the time. This growth in the collection of personal data is so immense that the amount of digital data in existence approximately doubles every two years, and large companies are responsible for creating about 80% of this data increase (Gantz & Reinsel, 2011).
Big data helps you understand how people perceive your products; with data that is received with every purchase, you will be able to know how your products are received in the market.
Initially the bank’s core banking system was product oriented, but the need of the hour was to develop a customer oriented system, because the challenge is to build customer loyalty, cross sell, and enhance repeat business.
In today’s society, technology has become more advanced than the human’s mind. Companies want to make sure that their information systems stay up-to-date with the rapidly growing technology. It is very important to senior-level executives and board of directions of companies that their systems can produce the right and best information for their company to result in a greater outcome and new organizational capabilities. Big data and data analytics are one of those important factors that contribute to a successful company and their updated software and information systems.
Basically, this research paper aims at exploring the threats that most users of financial information have gone through in divergent parts of the world over the recent past. In addition, the paper seeks to come up with coherent findings one the most contemporary local and overall financial disinte...
This system helps all of these banks provide financial secrecy which is that only you and your banker would legally be allowed to know the financial activity within your account. The financial secrecy, completely different from financial privacy, includes many regulations to maintain this asset of secrecy. For example, many banks would n...
economy, is undergoing rapid change. In the future banking industry will be divided into global, national and super-regional banks and a much smaller number of community banks. It is expected of these banks primarily super regional banks and community banks will extend their services to the needs smaller business through large loan processing centers utilizing credit-scoring techniques and "intelligent models" (artificial intelligence-derived computer-based models) .
Effectively, big data provides the companies with the opportunity to know and understand their customers. With Big Data, a company holds a lot of information about their customers, such as their habits, what is the product they prefer, the time they make purchases, how many products they buy and what kind of promotion their prefer. Then they can make a relation with who the person is, age, gender. Thus they can adapt their offer to the customer. If you are a good client, you can have private discount, or more discount. The objective is to know personally your customer to make them feeling unique.
Big data is a concept that has been misunderstood therefore I will be writing this paper with the intentions of thoroughly discussing this technological concept and all its dimensions with regard to what constitutes big data and how the term came about. The rapid innovations in Information Technology have brought about the realisation of big data. The concept of big data is complex and has different connotations but I intend to clarify its functions. Big data refers to the concept of a collection of large and complex amounts of data that are found extremely difficult to notate or even process by most on-hand devices and database technologies.
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)
Adopting big data can also help the banking industry by saving them from lots of embarrassment resulting from increase in the number of customer which in turn requires banks to improve on their performance. As stated earlier banks are entrusted with lots of information and this information must be safe will be required to be accessed ready and in a timely fashion. The use a normal small database will not be enough to perform this operation and if banks don’t embrace the use of big data they might start to experience failure in there system.