IBS Journal March 2017


27


“BANKS HAVE TO BREAK THROUGH THE ‘SILO FOG’ TO GET TO A SINGLE, CONSTANTLY EVOLVING DIGITAL PICTURE OF EACH CUSTOMER ACROSS EVERY RELATIONSHIP”


overheads. “Such banks are definitely a threat,” says Holmthorsson, “and an encouragement for traditional banks to try a new way.”


Obstacles


The three main obstacles to achieving a data-centric bank in the opinion of Temenos’ Winship are:


Source data availability to core systems: “All of a banks source systems must be able to provide robust data, with business context, in real-time to achieve strong customer analytics,” says Temenos’ Winship. “Too often, however, critical data solutions such as core banking do not yet have robust data integration capabilities, such as the ability to omit event streams or provide extensive data replication. This results in the data being trapped in the source system and unavailable to analytical solutions.”


Data platform & unstructured capabilities: In terms of the data platform, Winship believes, “many banks have not yet invested in the next generation of Big Data platforms. Banks are currently running traditional data warehouse solutions that, whilst effective, cannot respond rapidly to real-time and unstructured data.”


Analytical skillsets & staff: Lastly, regarding skillsets, “banks struggle to hire and retain staff with deep analytical experience,” says Winship. “Banks must look at more innovative compensation models, partnering and other [FinTech – Ed.] collaboration techniques to ensure they have the skills required to utilise analytics most effectively.”


According to Boxley Llewellyn, VP of Watson FS Insight Solutions at IBM, which has experience of AI going back to its Deep Blue machine and is now focused on cognitive technologies, “the industry is just realising the importance of analytics to provide more valuable insights – concerning behavioural segmentation, cashflow predictions and life event predictions.”


“Banks can and will find ways to improve their customers’ experience via advanced analytics,” he says. “New entrants have begun to grab snippets of this value, but a bank has advantages too – such as well-organised pre-existing structured data; the ability to integrate third party data; increasingly cloud- delivered analytical options; and the scale to bring them to market faster.”


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