Transcript of "The Case for Big Data in the Financial Services Industry, by IDC Financial Insights"
The Case for Big Data in the Financial Services Industry WHITE PAPER Sponsored by: HP Mic hae l Vers ace Kar en Masse y Se p tember 2 012www.idc-fi.com IDC FINANCIAL INSIGHTS OPINION Big Data technologies and new analytic capabilities are the primary platforms for innovation across business lines in the financial services market today. Business analytics, applied to the disciplines ofF.508.988.6761 consumer engagement, relationship pricing, capital management, compliance, IT governance, security, and fraud management, is the core innovation platform for improving decision making. Analytics and the ability to efficiently and effectively exploit Big Data, advanced modeling, and in-memory and real-time decisioning across channelsP.508.620.5533 and operations will distinguish those that thrive in uncertain and uneven markets from those that fumble. IDC Financial Insights believes that Big Data trends, among others including risk and regulatory compliance, are driving analyticGlobal Headquarters: 5 Speen Street Framingham, MA 01701 USA investments. Big Data is seen as a years-long journey for financial organizations. This journey has begun with the current effort of organizations to address the requirements of their traditional data infrastructures, but it is expected to grow in complexity in tandem with the further maturation of Big Data technologies, better articulation of business potentials, identification of ideal use cases, and buy-in from decision makers. SITUATION OVERVIEW The Financial Services Environment The financial services industry is experiencing disruptive change throughout the world. The drivers of change include regulatory reforms still pending following recent failures, ailing consumer and business sentiment, the continuing economic crisis in some markets and rapid expansion in others, the availability and cost of new technology and business models, and industry consolidation. This disruptive change can be characterized by macro-level trends and strategies for IT investments. The macro-level trends include: September 2012, IDC Financial Insights #FIN236979