Initially, CBA is using big data to analyse customer risk. “It can get better risk assessment by analysing businesses’ ongoing cash flow performance, to have early warning of risk challenges,” Mr Narev said in an interview on Wednesday after delivering the bank’s record $8. 68 billion full-year profit. "Storage costs are going down dramatically and your ability to search across it is going up exponentially in an unstructured way.
The financial system inquiry’s interim report, released by former CBA chief executive David Murray last month, highlights that “growing amounts of structured and unstructured data are being collected, stored and used by private sector firms and governments, a phenomenon known as ‘big data’. "Firms increasingly seek to extract value from these vast stores of data through information analytics to create and capture value in new ways.
Macquarie analyst Mike Wiblin said the opportunity for the banks from big data was humungous. “Banks will become tech companies,” he said. “Technology can inform risk analysis, but the big picture is [that] they are moving away from branches towards interacting with customers on iPhones and tablets.
At the Financial Services Council annual conference in Cairns last week, big-data expert and author Rebecca Costa spoke about data’s power to help with strategic decision-making. “Ninety per cent of the data we use to make decisions is unstructured and, to me, unstructured means unusable.
However, banks are also aggressively building up their capability to push their prized customer relationships in new directions, and thereby improve their ability to cross-sell new products. “The opportunities across the group [from big data] are literally endless,” Mr Narev said. “This is a huge strategic focus.
Read more here: SMH