Analyze and utilize big and small data in meaningful and measurable ways is vital for the banking industry.
The technology that permeates the banking industry today is missing many things – exceptfor buzzwords. Since the first punch card entered on an old Burroughs computer, bank technologists have been creating fun new terms for processing information. Now, as “cloud computing” seems to be peaking in a fever pitch, we witness the growth of a new phrase: big data.
This term is fast becoming synonymous with the fact that bankers are swimming in data that could be leveraged more strategically to drive the business. According to IBM, “Big data is more than simply a matter of size; it is an opportunity to find insights in new and emerging types of data and content, to make your business more agile, and to answer questions that were previously considered beyond your reach.”
I know earlier buzzwords such as management information systems, data warehouse and business intelligence may still reside in your brain’s cache memory, but stay with the program please. The cool, roll-off-the-tongue phrase is big data, and if you really want to impress the opposite sex, say your bank is pursuing a “Hadoop” initiative.
While the syntactic evolution of buzzwords is fine entertainment, I would like to argue that bankers today are suffering from poor implementations of the most basic management reporting and data mining. I would like to argue that we should prove we can handle small data before we hope to graduate to expensive new tools used by rocket scientists and drug researchers. For this reason, Gonzo bankers, I offer up Cornerstone’s Eight-Point Small Data Assessment. These are key areas where a bit of focus, development and analytic support in your bank could greatly improve business performance. Is your bank taking advantage of data sitting latent just a few clicks away?
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