transforming financial services with big...

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Transforming Financial Services With Big Data

Steve Totman, Chief Data OfficeFinancial Services Industry LeaderTotty@cloudera.com

Feb 8th, 2018

2© Cloudera, Inc. All rights reserved.`

<1%of unstructured data

is analyzed or used at all

<50%of structured data is actively used in making decisions

80% of analysts’ time

is spent discovering and preparing data

>70%of employees have access to data they

should NOT

Extracting value from data – an untapped opportunity

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We empower people to transform complex data into clear and actionable insights

DRIVE CUSTOMER INSIGHTS

CONNECTPRODUCTS & SERVICES

(IoT)

PROTECTBUSINESS

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We deliverthe modern platform for machine learning and

analytics optimized for the cloud

ENTERPRISE GRADE

✓ Secure

✓ Performant

✓ Compliant

SCALABLE

✓ Elastic

✓ Cost-effective

✓ Lower TCO

RUNS ANYWHERE

✓ Cloud

✓ Multi-cloud

✓ On-premises

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Cloudera Overview & Financial Services Focus

3000+Strong Partner

Ecosystem

+

1600 Employees Globally

+

19 Of the 30 G-SIBs Run on Cloudera

Strong Focus & Momentum in Financial Services

3 Of the Fortune 500 Top 5 Insurers Run

on Cloudera

5 Of the Top 6 Asset Management Firms

Run on Cloudera

250+ Financial Services Customers

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DRIVE CUSTOMER INSIGHTS CONNECT PRODUCTS & SERVICES (IoT) PROTECT BUSINESS

Using Deeper Customer Insight to Personalize Customer Solutions

Risk, Fraud, Compliance Powering predictive analytics to reduce ATMs out-of-service repair

Creating new revenue streams with an advanced anti-fraud solution

Cloudera powering data-driven financial customers

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Key drivers of digital transformation in financial services

Proliferation of Data

Unstructured and structured data growing at unprecedented rates, due to mobile apps and

IoT

Digital Disruption and Shift Towards Omni-Channel

BankingConsumers demand an enhanced experience. FinTech, InsureTech

startups threaten the status-quo

Escalating Fraud Costs and Increasing Cyber

Attacks The complexity and

scale of financial fraud and

cyber attacks is rising.

Regulations and Compliance

Changing regulatory environment requires firms to be more agile to meet compliance

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CUSTOMERS700+RUN SPARK ON CLOUDERA

CUSTOMERS750+RUN IMPALA ON CLOUDERA

MACHINE LEARNINGPATTERN RECOGNITIONANOMALY DETECTIONPREDICTION

ANALYTICSSELF-SERVE INTELLIGENCEREAL-TIME ANALYTICSSECURE REPORTING

ENTERPRISE-PROVEN MACHINE LEARNING AND ANALYTICS

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Cloudera Enterprise

9

The modern platform for machine learning and analytics optimized for the cloud

EXTENSIBLE SERVICES

CORE SERVICES DATA

ENGINEERINGOPERATIONAL

DATABASEANALYTIC DATABASE

DATA CATALOG

INGEST & REPLICATIONSECURITY GOVERNANCE WORKLOAD

MANAGEMENT

DATA SCIENCE

Amazon S3 Microsoft ADLS HDFS KUDUSTORAGESERVICES

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• Unified security – protects sensitive data with consistent controls, even for transient and recurring workloads

• Consistent governance – enables secure self-service access to all relevant data and increases compliance

• Easy workload management – increases user productivity and boosts job predictability

• Flexible ingest and replication – aggregates a single copy of all data, provides disaster recovery, and eases migration

• Shared catalog – defines and preserves structure and business context of data for new applications and partner solutions

Open platform servicesBuilt for multi-function analytics | Optimized for cloud

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Run anywhere. Deploy any way.

Simple Unified Enterprise

Proven at scaleTrusted security

Hybrid or multi cloudPlatform-as-a-Service

Simplifies operationsWorks with your tools

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8%of corporate workloads

are in the cloud(1)

12%of business analytics market in cloud

growing at 25% CAGR to 2020(2)

22%of customers run

in the cloudEnterprise grade | Scalable | Runs anywhere

1. Citi estimated that, in 2015, 8% of corporate workloads were in the cloud2. IDC estimated that, in 2015, 12% of business analytics market was in the cloud growing at a 25% CAGR to 2020

Cloudera in the cloud era

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Our most successful customers do these five things

1) Build a data-driven culture

2) Develop the right team and skills

3) Be agile/lean in development

4) Leverage DevOps for production

5) Right-size data governance

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• Machine learning and analytics platform

• Enterprise scale, security, and performance

• Cloud-native and cloud-differentiated

• Open-source innovation and efficiency

• World-class partner ecosystem

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“Data ages like a good wine… Apps age like fish.”

- James Governor, RedMonk

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Where is financial services data?Traditional Data Plus New Data Sources

Key Structured Data Sources/ Systems Key Un/Semi-structured Data Sources

Risk Data CRMCore banking Systems

ATM Data

Other/Legacy Platforms

.

ClickstreamData

SocialMedia

Customer Sentiment

Location/e-Comms Data

Machine Data

Documents, Videos, Call Center Records

Apps DataPayment/transactions

Website and log data

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Traditional and Alternative Data Sources

Patterns in Market Data

Satellite Image Analysis

Simulation for Strategy Modeling

News Feeds for Economic Forecasting

Market Sentiment Localized Pricing

Risk Assessment Compliance

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Putting big data to work across financial services Customer Journey/360 Risk & Compliance

Financial Crime

Customer Loyalty,

RetentionPersonalizationNext Best Offer

Risk Analytics, Underwriting,

Actuarial

BASEL,BCBS-239,

FRTB, IFRS-9

Risk Aggregation, Stress Testing

AML,Payments

Fraud

Insider Threats Cyber Security Investment

Research

Portfolio Analytics, Robo-

Advisors

IoT, Blockchain,

ML/AI

Product & Service Efficiencies

Modern Data ArchitectureETL/ Warehouse Optimization, Active Archive, Storage Optimization & Embedded Analytics

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Adoption of Cloudera in FSI – Circa 2010-2014

Modernize Architecture

• ETL Offload• Data Warehouse

Optimization• Storage/Archive

Optimization• New Data Sources -

Structured / Unstructured

Lower Business Risks

• Risk Aggregation and Modeling

• Regulatory Compliance

• Fraud• Trade Surveillance• Algo back-testing

Drive Customer Insights

• Proactive Care/Customer JourneyScience

• Churn Analysis• Personalization• Up-sell/Cross-Sell• Next Best Offers• Contextual Offers &

Services

New & Rapidly Growing

• Cyber Security

• Machine Learning

Improve Product& Services Efficiency• Trade &

Investment Research

• Tick Data Storage• AML• Internet of Things

Initial Adoption/Use Case

Expansion into Strategic Initiatives

Growing Focus on Revenue

Generation

C Level / Board Level Priority

Continued Expansion into Strategic Initiatives

6-9

mon

ths

6-9

mon

ths

6-9

mon

ths

6-9

mon

ths

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Data-driven journey for today’s customers

BUSINESS VALUEU

SE C

ASE

TYP

ESTACTICAL

VISIBILITY

PRODUCTIVITY

BUSINESSTRANSFORMATION

STRATEGIC

Canadian Bank ● 15 use cases● 13 months● Fraud, Risk , AML● Fully PCI certified cluster● 1 petabyte of ingestion● 200 person BI staff● 12 Hadoop admins

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BARDESS ANALYTICS VALUE CHAIN

Incr

easin

g Bu

sines

s Valu

e

A systematic approach to conceptually visualize the

strategic journey to insightful

business analytics.

z2h Stack®Modernize your architecture to take advantage of a “schema on read” data-lake approach to data storage and massively parallel processing of Hadoop.

Democratize your data further by empowering business users to prep their data for analysis. Enable DaaS with governance.

Identify patterns, relationships and outliers in vast amounts of data in visually compelling ways.

Apply, Artificial Intelligence (AI), Machine Learning (ML), predictive, prescriptive and geospatial capabilities to further leverage your data assets.

Solution Provider of the year 2016

Innovation Provider of the year 2017

Storage &Processing

VisualAnalytics

AdvancedAnalytics

DataPreparation

Enterprise Data Hub- Single place for all data- Secure- Governed- Managed

The Blockchain -Ripple Transactions

Core Banking Systems

+

Analysis - Insight

Use case – AML @ POMBAR bank –getting a complete picture across all transactions –traditional systems and the blockchain

INSIGHT ACTIONDATA

ANALYZE

DATAENGINEERING

ANALYTICS& REPORTING

DATASCIENCE

OPERATIONALPROCESSING

Data Analysis Life Cycle - INFINITY LOOP

Creating New Revenue Streams with an Advanced Anti-fraud Solution

• Dramatically improved search accuracy• 5X increase in number of searches

supported annually and 25X increase in searches per customer daily

• Increased revenue through new market expansion

CUSTOMER 360

FINANCIAL SERVICES » FRAUD PREVENTION» PRODUCT INNOVATION» SERVICE IMPROVEMENT

Delivering Deep Insights and Best

Practices in Big Data Security &

Compliance

• First PCI Certified Hadoop platform

• Optimizes EDW and improves fraud

detection and prevention

• Secures 16 PB in a PCI-compliant

manner every day

• Security Information Event

Management (SIEM) - monitor access

to sensitive datasets, full audit trail of

user behavior

FINANCIAL SERVICES

» DATA SECURITY

» FRAUD PREVENTION

» IT COST REDUCTION

Applying Predictive Analytics to Retain Human Capital & Monetize Data

• DataCloud aggregates data from 600K clients to prevent employee churn, ensure salary equality, and maximize human resources

• Clients focus retention efforts on employees with highest flight risk

• Tremendous growth among client base drives greater revenues

CUSTOMER 360

BUSINESS SERVICES» DATA MONETIZATION» PREDICTIVE ANALYTICS» PRODUCT INNOVATION

Improving Credit Data Processing Speeds—down to the millisecond

• Delivers instant access to aggregated financial data in cloud

• Enables organizations to make critical business decisions in milliseconds

• Solves complex credit underwriting problems using machine learning

CUSTOMER 360

FINANCIAL SERVICES» SERVICE IMPROVEMENT» SCALABLE PROCESSING» MACHINE LEARNING

Fraud Reduction & Personalized Pricing• Consolidated real-time, internal and

external datasets in an EDH• £5 million claim cost reduction

through fraud prevention• 50% increase in customer retention• Doubled policies issued in 18 months• Can now analyze 10s of millions of

quotes in under a minute• Machine learning for personalization

of insurance quotes; improved accuracy over time

FINANCIAL SERVICES» PRODUCT INNOVATION» CUSTOMER 360°» FRAUD PREVENTION

BANKING

» PRODUCT INNOVATION

» SERVICE IMPROVEMENT

» FAST DATA INGESTION

CUSTOMER 360

Building a Near-Real-Time Transactional

Analytics System

• Enables customers to analyze spending

patterns

• Captures, transforms, enriches, counts,

and stores a transaction within a few

seconds of card purchase

• Calculates trend information by account

holder across time periods, categories,

and retailers

Santander Group

Enhancing Enterprise Data Management and Performance Initiatives

• Proactive identification and resolution of issues

• Keeping employee productivity high and improving service delivery

• Improving infrastructure performance, capacity, and analytics

CUSTOMER 360

FINANCIAL SERVICES» INFRASTRUCTURE OPTIMIZATION» SERVICE & PROCESS IMPROVEMENT» OPERATIONAL ANALYTICS

Using Deeper Customer Insight to

Personalize Customer Solutions

• Provides 360-degree customer view to

improve marketing effectiveness and

efficiency

• Enables real-time quoting of premiums

based on risk

• Analyzed customer data against 210

million U.S. survey database records in

15 seconds

CUSTOMER 360

FINANCIAL SERVICES

» 360 CUSTOMER VIEW

» PREDICTIVE ANALYTICS

» OPERATIONAL ANALYTICS

Better Predicting Risk and Confirming Compliance

• Uncovers correlations between exchange rates and transaction volumes in specific communities

• Improves risk-decision process with predictive analysis on datasets in same store at time of transaction

• Enhances AML compliance

CUSTOMER 360

FINANCIAL SERVICES» FRAUD DETECTION» PREDICTIVE ANALYTICS» FAST DATA INGESTION

Thank youSteven Totmantotty@cloudera.com@steventotman