April 26, 2017
There remains much debate in the market as to what exactly is Big Data, and the impact it will have on organisations and their relationships with customers to grow business.
The survey responses demonstrate the extent to which this whole area of Big Data and analytics is still relatively youthful in its development in the banking environment in the Kingdom.
It is encouraging that responses illustrate the importance and an understanding for a strategically driven approach and over half the responders are engaged in analytically based projects (a significant increase from our survey responses one year ago).
However, the implementation is often still seen in existing operational terms, for example with Collections and Recovery stated as the most important application of big data. Perhaps this is a reflection of current market pressure and planning for anticipated macro economic pressures.
Certainly from responses, the customer does not feature particularly highly. Using Big Data to enhance the customer experience and the development of new services and products ranked very poorly. Perhaps this is impacted by the perceived relative lack of people skills and knowledge base. Interestingly though, new product cross and upsell to existing customers scored highly, second only to improvements with collections and recovery.
The key challenges stated reflect concerns with the availability and quality of input data. Though somewhat surprisingly, information security is not seen as a particular challenge. Credit Bureau data is still regarded (by over 55% of responders) as the key data source. Other government, public sources, and social media data are some way behind, and demonstrates a need for both data owners to appreciate and utilise the full value of these data assets, and for potential users of these data to understand the business potential and to more aggressively pilot new analytically driven approaches.