Page 38 - Banking Finance November 2017

ARTICLE

experiences to the customers. SBI has recently launched and investigation of past business performance to gain
SBI InTouch branches in several cities and ICICI has also insight and drive business planning. Business analytics can
come up with fully digital branches. hold the key to better performance, informed decisions,
actionable insights and trusted information. The important
Leveraging technology, other banks are also coming up with features of Business Analytics are:
similar branches to promote digital channel transactions. Y Analytics provides valuable data for business decision
This is going to be a sustainable trend. All the banks are
Y Banks can take 360 degree view of their customers.
trying to ensure that the digital channels are efficient and
Y New analytics techniques uses behavioral pattern and
accessible from various platforms to bring convenience.
Digital payments are much safer than cheques which could machine learning to help separate the real customers
from the fraudsters and provides more seamless
get misplaced or signatures may not match.
transactions and experiences.
Emerging Technologies
Implementation of appropriate BD analytics by banks is
Cloud, Big Data & Analytics, Internet of Things (IoT), Near going to be the key in achieving greater customer centricity
Field Communications and Blockchain Technology are going and for acquiring a deeper understanding of customer needs
to be big Things in future given the proliferation of customers' external data, such as,
1. Cloud social media activities and online behaviour.

Cloud computing lets people use internet to tap into
hardware, software and a range of related services on 3. Internet of Things (IoT)
demand from powerful computers, usually based in remote The Internet of Things (IoT) is the network of objects that
locations. It is the emerging trend in banking sector as it are connected to the net. Today, we are connected to
scalable, efficient, cost effective and customer friendly. As internet through a personal computer, a laptop, a tablet or
far as data security is concerned, efforts are on to develop a smart phone. Very soon, we may have many more such
the right model to address the concern. devices like TV, media player, refrigerator, oven, toaster, air-
conditioner, wearables, etc.
2. Big Data & Business Analytics
Big Data is a broad term for data sets so large or complex These objects would be connected not only to the net but
that traditional data processing applications are inadequate also to each other through it. What's more, they would thus
to handle such data. An example of big data might be be able to communicate, i.e., share data with each other.
petabytes (1,024 terabytes) or exabytes (1,024 petabytes) A true Internet of Things is a coordination between multiple
of data consisting of billions to trillions of records of millions devices. IoT describes a world where just about anything can
of customers. With the amount of data generated today, be connected and communicate in an intelligent fashion. In
one would not be surprised that very soon all of us have to other words, with the Internet of Things, the physical world
deal with Big Data in day to day operations. is becoming one big information system.

In the scenario, the new challenges would include data One study says world today has 15 billion connected devices
capture, data curation, search, sharing, storage, transfer, and in the next five years the number may go upto 50 billion.
information privacy, analysis of data, etc. While BD throws In other words, with the IoT, the physical world is becoming
up these challenges, the use of BD analytics in a meaningful one big global information system. For banks the IoT will
way would offer a significant competitive advantage. It is a deliver an unprecedented level of data and data-driven
field which can be used by banks to further their business customer insight. This will allow banks to provide their
interest in the increased IT environment. customers a truly bespoke experience with insights, advice,
and offers that reflect the day to day events in customers'
Business Analytics in general refers to the skills, lives. The IoT is the key factor that will enable a bank to
technologies, practices for continuous iterative exploration fully transform into a bank of things.

38 | 2017 | NOVEMBER | BANKING FINANCE

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