CHAPTER 3: BIG DATA OF BANKING INDUSTRY AND CONCEPTS
II. BIG DATA AND ITS APPLICATION IN BANKING
According to IDC Semiannual Big Data and Analytics, the banking sector has a higher jump in Big Data analytics investment 2016 by $20,8 billion2. It is a domain one of big data services. As depicted in figure 2.1, the investment in big data analytics of the banking sector accounts for 13%, higher than that of discrete manufacturing, process manufacturing, government and professional services.
2 https://medium.com/datadriveninvestor/big-data-analytics-in-the-banking-sector-b7cb98d27ed2
Figure 3.1: Share of investment in big data analytics by sector
Source: IDC Semiannual Big Data and Analytics Spending Guide of 2016
As presented in figure 2.2, the share of big data investment toward data analytics for risk accounts for 6%, while the share of investment on new products for traditionally unprofitable customers are the highest percent of 22%.
Figure 3.2: Share of investment in big data analytics by sector
Source: IDC Semiannual Big Data and Analytics Spending Guide of 2016
According to IDC, the trend of big data is growing and became bigger in 2017. The database of finance and banking will be one of the cornerstones of the flood of big data.
Big Data mining is necessary and become the trend in the process of economic and social development. This activity can create a revolution in the field of business. Especially for banks, the database from Big Data can be used to reach customers, through the appropriate channels.
In recent years, with the rapid development of the Industrial Revolution 4.0, the banking and finance industry has rapidly adopted advanced technologies into its business model.
ChatBot is a specific application that has been launched by many banks and other financial institutions around the world as well as in Vietnam in order to provide prompt support to customers.
With this application, frequently asked questions about Eximbank’s products and services will be answered immediately by Mai. Questions are available in the database no matter what time of day (i.e. 24 / 7) wherein users can be directed to suitable content or contact methods. FPT IS Information System Company is the vendor that provides and deploys this Chabot system.
“In essence, or new ‘Mai’ Chabot is an online tool that can represent as a professional consultant for enhanced customer care. Since June 2018, Eximbank has cooperated with FPT IS to build this application. So far, we have completely built an application to serve customers’ most popular demands such as: Advice on bank cards issued by Eximbank, Promotion programs for depositors at Eximbank, Location of Branches/Transaction Offices and ATMs throughout Eximbank’s network and some other frequently asked questions. We believe this exciting new technology will provide customers with faster and higher quality service experiences in the digital age”.
ChatBot is built based on the newest technology waves of Artificial Intelligence, Machine Learning, Natural Language Processing and Big Data. During this initial stage, for questions that ChatBot cannot answer, the Machine Learning technology will automatically record questions and after Eximbank’s staff respond to the customer, the new data will be used to train Eximbank’s ChatBot answering similar questions afterward. In the medium term, the ChatBot will be automatically trained to improve better and develop more functions to meet the higher and higher requirements of customers.
In early September, Eximbank also deployed Infosys Finacle Core Banking software solution to replace its old Core Banking system. This transformation aims to develop more products – services, tight internal management and alignment of the banking system, creating a foundation for improving customer service, risk management and more efficient services. The launch of its ChatBot application is a significant first step in building up its digital capabilities as well as a modern and dynamic orientation for Eximbank in the era of Industry 4.0.
Summary: Banks today visit millions or billions of data information needs and customers' feelings. Now they can use the tools to enable them to make better use of resources in big data mining efficient enterprises - outside third of manpower and finance. To do this, the bank need employees with good capacity in data mining. This will create a viable solution, now or in the near future. Currently, large size banks have a clear plan to invest the big data system and how to explore it. Understanding the customer's goals through consumer behavior analysis, it is helpful for banks to organize internal activities, provide timely service improvement and cost best activities, or offer solutions to customers, so as to improve their efficiency.