Big data activities on the rise in Australian banking and finance sectors
Thursday, September 13, 2012
By Anne Widjaja
According to the latest IDC research, marketing, risk analytics and payment fraud management will lead big data use cases in the Australian banking and financial services sector.
The IDC study, titled Business Strategy: Big Data Journey in Australian Financial Services - The Journey Begins, has uncovered useful insights in to the use of big data tools and technologies within the Australian banking and financial services sector.
IDC spoke to senior data analytics IT and business executives from 10 Australian banking and financial services organisations about their initial approaches to big data.
Executives were asked about each organisation’s management priorities and investment plans for future big data strategies.
The study showed that big data deployments in critical areas of marketing, risk analytics and payment fraud, would forge ahead as leaders of big data usage. These areas were shown to be developing big data as an extension of existing analytics programs and business-as-usual investments.
The report also found that larger, well-established ICT vendors are releasing mature big data solutions and services to market. However, vendors are ensuring that these products are integrated with existing solution sets. According to IDC, 39 major IT vendors are now targeting solutions and services relevant to the Australian banking and financial services sector across the infrastructure, services and software big data technology stack.
The report recommended that rather than adopting new approaches to big data solutions, financial services institutions should build on existing relationships to effectively use big data sources.
IDC research manager, Emilie Ditton, said that the “biggest” indicator of success any organisation’s approach to big data usage was its "current effectiveness in their business analytics deployments and programs.”
"Organisations identifying opportunities, benefits and use cases for big data will build on processes for delivering business cases, and managing change already in place within these FSI organisations."
IDC Financial Insights expects to see growth increase around big data activities in the Australian banking and financial services sector over the course of the next three years.
"Reflecting the priority currently placed on marketing focused activities, we expect the current efforts of FSIs in Australia to achieve single customer views to give way to much more significant big data projects around price optimisation, personalisation of customer experience, and real event-based marketing," said Michael Araneta, research director, Financial Insights.
This report also drew upon on the analyst firm’s previous research across the big data technology stack and IDC’s Financial Insights into big data activities in banks and ICT vendors across the Asia Pacific.