Delivering Improved Performance & Reduced Risk For Financial Services Firms
Financial services firms have some of the most complex needs related to “big-data,” and they also stand to realize the greatest benefit from information due to the transactional nature of their business. These institutions are constantly exploring new ways to develop insights across customers and markets. The idea of creating an “information advantage” is not revolutionary; however the move toward incorporating new types of data from inside and outside their organizations is producing results. With the power of financial data warehouses and advanced analytics, financial services firms are able to incorporate data from a wider pool of digitally available information that is now easier to access, manage and make sense of than ever before.
In a recent study with the University of Oxford, 71 percent of of surveyed financial markets firms reported “that the use of information and analytics is creating a competitive advantage for their organizations, compared with 63 percent of cross-industry respondents.” 1 in this area has nearly doubled in just two years when compared to a similar study in 2010.1 The number of firms reporting an advantage in this area has nearly doubled in just two years when compared to a similar study in 2010.
Financial Firms & Institutions Realize “Big” Value
71 percent of of surveyed financial markets firms reported “that the use of information and analytics is creating a competitive advantage for their organizations, compared with 63 percent of cross-industry respondents.
Financial institutions will realize value by effectively managing and analyzing the rapidly increasing volume, velocity and variety of new and existing data, and putting the right skills and tools in place to better understand their operations, customers and the marketplace as a whole. There are several ways data analytics can be applied to financial service firms. Below a use case for Portfolio Management is outlined.
Portfolio Managers benefit from customized analytics solutions leveraging SAP tools for identifying and correcting under-performing assets to maximize portfolio performance and reduce risk. This is of great value considering it provides the information clients and managers need to reduce risk, more closely manage and proactively improve portfolio performance.
Figure 1: Portfolio Management Dashboard
12012 Big Data @ Work Study