keynote big data in cebit 2014
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Big data is just technology, a tool, but one which if used properly can provide great value to banks and customers alike.TRANSCRIPT
Big Data in Financial ServicesSolving Banking’s Biggest Problem with Big Data
Karl Rieder, Code_N, March 11, 2014
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Big Data in Financial ServicesAdoption of Big Data: FS vs. All Industries
“Considerably enhancebig data capability”
“Invest in improveddata storage”
“Have Hadoop solution in production”
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Retail, Private, and Commercial Banks
“Single view of the client”
Customer portfolio analysis
Social media analytics
Credit card fraud
Big Data in Financial ServicesWhat are Banks Doing?
Improving customer service and sales; re-establishing trust
Investment Banks
Calculating daily P&L
Measuring market and credit risk
Regulatory reporting
Algorithmic tradingStreamlining operational procedures;
improving efficiency
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In investment banking, the current trend is evolutionary… improving existing processes – larger data stores and faster processing
In 2013, GFT has built:
Trade repository: holds 10 billion trade states (6 Petabytes)
Trade event store: records millions of daily events
Real-time trade processing and accounting system: calculates 100s of millions of daily balances
MapReduce-based ETL: processes 750 million rows of data
Volcker rule calculation: scours 4 Petabytes of historical data
Big Data in Financial ServicesEvolution
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Evolutionary approach has been clearly beneficial for the banks:
More efficient operational procedures
Reduced timelines
New calculations and insights
Accurate (regulatory) reporting
… but greater gains could be made from a more revolutionary approach
Big Data in Financial ServicesEvolution
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Big Data in Financial ServicesA Simplified View of an Investment Bank
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Big Data in Financial ServicesThe Silo Problem
A sadly common problem in all large investment banks…
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Big Data in Financial ServicesRevolution – The Soltuion
Source A
Source C
Source D
Source B
Source E
Process 1
Process 2
Process 3
Process 4
Result 1
Result 3
Result 2
Result 4
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Big Data in Financial ServicesRevolution – The Soltuion
Source A
Source C
Source D
Source B
Source E
Data and Processing Consolidation
Result 1
Result 3
Result 2
Result 4
Distributed storage
Distributed processing
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Consistent, golden-sourced data - single source of truth
Elimination of system and data redundancy
Reduction of operational costs
Cost-effective data administration
Unified, complete, and aggregated view of business
Improved analytical capability
Data consolidation
Architectural rationalization
Analysis of full data sets
Extraction of new information and insights
BenefitsObjectives
Big Data in Financial ServicesRevolution – Objectives and Benefits
A more compete view of banking activity, at a lower price!
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Big Data in Financial ServicesThe Future
Lots more data
Data quality is critical
Value comes from analytics
The time is now!
GFT Page 1213.04.23© Copyright GFT Technologies AG, 2014
Thank you
Karl Rieder
GFT IT Consulting, S.L.U., Avenida de la Generalitat, 163–167 08174 Sant Cugat del Vallès España
T +34 93 172 7071
M +34 649 845 130