27 May 2017
Visit EBAday.com

Time for data-driven banking to come of age

18 May 2017  |  9451 views  |  0 Michael Gorriz, Standard Chartered

Standard Chartered group chief information officer, Dr Michael Gorriz says that banks need to develop new strategies for how to harness their data assets to spur growth.

The explosion in data sources – mobile data, real-time social data, and the Internet of Things – combined with the coming of age of data science and open-source data technologies, has created a clear divide between the banks that are ready to embrace the data revolution, and those that are not.

Banks need to re-invent how they work, given the exponential speed at which technology is evolving. At Standard Chartered, we’ve made harnessing our data assets a key priority.

Data ownership and privacy

Our data-driven world raises questions about privacy and who owns the data when someone starts to share their personal information. This debate has existed since the advent of the internet.

Organisations that collect Big Data want to run analytics to understand their customers and improve the quality of their services, while others are advocating for users to regain data sovereignty.

Collecting and storing data, in addition to abiding by ever-increasing levels of privacy and regulatory compliance, make for a deeply complex operating environment for banks.

Some have suggested that privacy will become mathematically impossible in a matter of years when artificial intelligence (AI), combined with data analytics, can start to plug knowledge gaps by inferring from known data.

What is important is making sure people have more direct control over their data and can choose what they make available. Generally, people don't mind giving out data if they get something in return. As long as customers are given a choice, see the benefits and are asked for their agreement, they are more likely to share their data. Banks and other service providers have to tread a fine line between being helpful and being intrusive.

When used correctly, Big Data is very powerful. Our team in India has worked out how data analytics could be used to identify potential instances of money laundering, and address financial crime risk. With the rise in regulation since the 2008 financial crisis, we are also exploring solutions to improve reporting that meets the requirements of central banks.

We have invested to build our own ‘data lake’ – a state-of-the-art platform that allows us to embrace the data revolution and depart from the traditional data warehouses that were functionally limited, expensive and slow to use.

Trustworthy data

The success of any venture into Big Data depends on data you can trust. Indeed, data quality is one of the biggest problems in the Big Data space, exacerbated by the diverse nature of data coming from both internal and external data sources.

Making sense of data in a unified model is crucial. Without that, we end up with data but not information. As a bank, we are focusing on the root of this problem. We are looking at open standards like FIBO (Financial Industry Business Ontology) to help us achieve this. There are also novel techniques in the areas of machine learning and AI that are accelerating the convergence of data models across disparate sources.

Despite the prevalence of smart algorithms capable of using data to derive intelligent conclusions, I’m of the view that we remain years away from being able to be rely on machines to run our lives.

A colleague described a situation in which he received a threatening call from a debt collection agency, only to find out later that the machine had matched him with the data of someone else with the same name. Clearly, banks and many institutions still require experts in data quality governance.

While it is important for Standard Chartered to strive to become truly data driven, our business isn’t a technical machine with input and output factors. Big Data is a means to an end and not an end in itself.

We don’t measure success by the amount of data that we are able to harness or the number of apps we’re able to invent, but by the extent to which Big Data helps us gain more insights into the real, human needs and desires of our clients.

I’m a firm believer that with the advancements in machine learning, humanity will still be the architect of the world that we live in.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Standard Chartered supercharges fintech accelerator graudates

Standard Chartered supercharges fintech accelerator graudates

25 April 2017  |  4906 views  |  0 comments | 4 tweets | 7 linkedin
Standard Chartered debuts API sandbox for corporate community

Standard Chartered debuts API sandbox for corporate community

10 February 2017  |  8770 views  |  1 comments | 14 tweets | 11 linkedin
Standard Chartered launches personalised investment tool for affluent clients

Standard Chartered launches personalised investment tool for affluent clients

15 November 2016  |  5744 views  |  0 comments | 1 tweets | 18 linkedin
Standard Chartered hails its 'Uber Moment'

Standard Chartered hails its 'Uber Moment'

04 October 2016  |  6436 views  |  0 comments | 1 tweets | 5 linkedin
Standard Chartered to spend $3 billion on global tech hubs

Standard Chartered to spend $3 billion on global tech hubs

08 July 2016  |  10342 views  |  0 comments | 15 tweets | 10 linkedin
Standard Chartered goes global with 'bank on an iPad'

Standard Chartered goes global with 'bank on an iPad'

08 March 2016  |  11093 views  |  1 comments | 14 tweets | 28 linkedin
The force awakens: Big Data in banking

The force awakens: Big Data in banking

01 March 2016  |  42246 views  |  4 comments | 38 tweets | 30 linkedin
Standard Chartered appoints non-banker Gorriz as group CIO

Standard Chartered appoints non-banker Gorriz as group CIO

25 March 2015  |  4887 views  |  0 comments | 7 tweets | 3 linkedin

Related company news

 

Related company information

Standard Chartered Bank

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit dh.comvisit www.niceactimize.com

Who is commenting on wholesale banking?

Top wholesale banking topics

Most viewed Most shared
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
7525 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
6445 views comments | 16 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
6429 views comments | 12 tweets | 20 linkedin
Enterprise Ethereum Alliance triples in sizeEnterprise Ethereum Alliance triples in si...
6093 views comments | 15 tweets | 17 linkedin
Citi and Nasdaq run blockchain-based settlement for private securitiesCiti and Nasdaq run blockchain-based settl...
5667 views comments | 9 tweets | 14 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job