Information-driven Financial Services organisations rely on Cloudera Enterprise to speed digital transformations
Financial services firms from all over the world are under pressure to grow their businesses by adding new, consumer-friendly digital services, including more mobile access options, while minimising risk and maintaining compliance. Today Cloudera, the global provider of the fastest, easiest, and most secure data management and analytics platform built on the latest open source technologies, announced more financial services firms are turning to Cloudera Enterprise as the backbone of an enterprise data hub to support digital transformation efforts.
Cloudera’s big data software solutions help information-driven financial firms increase revenue while at the same time attracting new and retaining existing customers. Cloudera solutions also enable powerful fraud detection capabilities and ensure that financial organisations are complying with government regulations.
“Financial services organisations have many challenges to overcome as they move to embrace a digital transformation including customer journeys, fragmentation, security, privacy, and data quality. They must also attract a new generation of customers who require these institutions to offer more services over a variety of channels,” said Steve Totman, big data evangelist and industry leader, Financial Services at Cloudera. “We have seen strong demand for Cloudera’s enterprise data hub from financial firms that need to address these complex business challenges and enable faster and more accurate analytics while adhering to regulations and requisite security and governance practices.”
Increasing Business Value
Cloudera works with more than 180 leading global financial organisations including Allstate, Bank Mandiri, Credit Suisse, DBS Bank,Markerstudy, Nordea, Northern Trust, and Royal Bank of Scotland to realise business value in three key areas:
- Customer Insights: Financial services organisations need to centralise fragmented customer data that resides in silos spread across hundreds of systems and platforms in order to gain a more complete view of their customers’ behaviors and then use that information to boost satisfaction and retention. By using Cloudera’s enterprise data hub, organisations can create a secure, single, central, active repository that builds a true 360-degree view of the customer journey.
- Fraud Detection and Cybersecurity: Traditional technology cannot keep up with the scale and sophistication of advanced persistent threats. Customers use Cloudera to detect and prevent fraud by enriching and analysing full data sets—both historical data and real-time streaming data. Cloudera’s platform enables financial services organisations to take advantage of machine learning models that predict cybercrime, money laundering and insider threats faster and with more accuracy.
- Risk and Compliance: As the requirements for compliance with an increasing variety of risk, corporate governance, transparency, and technology standards grow to exabyte scale, financial services firms and regulatory agencies are building data infrastructure with Cloudera’s platform at the core. Deploying an enterprise data hub means organisations can reduce the cost of compliance and generate compliance reports faster for regulations such as Dodd-Frank, CCAR, BCBS239, FRTB, Basel III, Solvency II, MiFID II, IFRS-9, PCI DSS and more.
In each of these use cases, customers chose Cloudera’s platform for their expertise and as a foundation for transforming existing processes through machine learning/artificial intelligence and predictive modeling. In the financial services industry, model scoring ensures that organisations can eliminate risk and detect fraud faster and smarter by utilising massive amounts of data to train their systems.
Growing Customer Momentum
Financial Services organisations are adopting modern data management and analytics platforms to ensure their data is secure, easily accessible and compliant with the latest industry regulations. Today, 19 of the top 30 global systemically important banks (G-SIBs) use Cloudera to gain insights from their data.
Muhamad Guntur, SVP Enterprise Data Management, Bank Mandiri, commented: “We have been committed to improving experiences for our customers across touchpoints and leveraging big data is a significant part of that. As our organisation has become increasingly data-rich, we have been in need of a technology partner that will help us derive real meaning and business value from this trove of data. Cloudera’s big data solution is part of our efforts to create a more seamless banking experience for our customers and we are thrilled to be working with them to make this a reality.”
“We wanted to create an enterprise data hub that would allow us to move past vertically aligned implementations of key data marts without any governance, and eliminate data duplication so we could have a single representation of the data across the organisation. Ultimately, we’re trying to monetise the concept of big data to add financial value to our businesses and our clients through new services and business capabilities,” said the head of Data Architecture and Semantic Technology, Credit Suisse.
David Gledhill, chief information officer, DBS Bank said: “Over the past few years, we have been deeply immersed in furthering our digital innovation agenda. From changing the culture and mindset of our employees to re-architecting the bank’s technology infrastructure and leveraging artificial intelligence, biometric and data analytics, we hope to create a more intuitive and seamless banking experience for our customers. As the World’s Best Digital Bank, working with right partners is important. We’re excited about the data solution Cloudera provides and look forward to working closely with them to improve our customer proposition.”
Dan Fiehn, group IT director for Markerstudy, a leading UK insurer and 2016 dual-award winner of Gartner’s Most Innovative Digital Product in EMEA and EMEA Financial Service Digital Champions, said: “Our ability to innovate is based on the work we have done with Cloudera Enterprise. We use video telematics to track fleets of vehicles, predict driving patterns and warn customers of potential accidents. This big data analytics platform, powered by Apache Hadoop, helps us gain customer insights to increase safety, make risk and underwriting more accurate, and decrease fraud occurrences.”
“Nordea has modernised its IT landscape by using Cloudera’s platform for data processing, management, storage, and lineage, which has expedited performance, improved the economics of IT investments, and enhanced data quality,” said Alasdair Anderson, executive vice president, Nordea. “As a result, Nordea is now positioned to reduce risk and achieve regulatory compliance while delivering enhanced customer experiences.”
Expanding the Partner Ecosystem
To deliver the most effective, real-time data analytics solutions specific to the financial services market, Cloudera has partnered with companies such as CSC and SAS to deliver compliant environments that decrease time and cost.
“Cloudera was critical to our PCI/HIPAA-compliant solution. The unique technologies of Cloudera Navigator, Cloudera Sentry, and other security capabilities were essential to the successful audit of the solution,” said Jim Coleman, big data product and offering practice partner, CSC.
“Partnering with Cloudera allows SAS to provide financial services customers an enterprise data hub where they can have all their data in one place,” said David M. Wallace, Global Financial Services marketing manager at SAS. “This promotes collaborative efforts between the analytical teams and provides timely, reliable and accurate Information needed to support business decisions.”
Learn more about why leading global financial services companies rely on Cloudera: http://www.cloudera.com/solutions/financial-services.html
Beyond the bottom line: why brands must show they care to connect with customers
By Vadim Grigoryan, Partner, Lunu
Over the past few years, we’ve witnessed an ever-growing activism among consumers, with public opinion demanding that their concerns be heard and addressed. No industry has experienced this more than the retail sector, with brands regularly slammed by NGS or consumer-led initiatives for violating legal requirements or moral principles. Moving one step further in the experience economy, brands are not only required to provide a first-rate customer experience, but also a conscience. The product must be good quality, as should the experience of purchasing it. But now on top of that, consumers should feel positive about where they’re spending their money. This is particularly true in the crypto community, with cryptocurrencies regularly pointed out as too speculative as a product, or to energy-intensive. Is this really a surprise coming from a generation whose top concerns are collective ones such as the environment and global warming? The answer is a straight no! Brands have to face this new reality and embrace it accordingly.
This next step in the experience economy, that can be called conscious consumerism, provides an opportunity for brands to reinvent themselves and bring to the top of their agenda something that has so long been kept at the bottom, or on the side. Brands need to stand for something bigger than themselves. If they fail to do so, they will also fail to make an impact in the consumer’s mind, ultimately disappearing as a brand altogether.
- From the experience to the conscious consumerism. Today’s economy is as much about giving people the opportunity to feel good while purchasing the product or service, as it is about the feeling after the purchase. Environmental, social, and moral concerns are increasingly at the top of consumers’ minds and on the front pages. Brands need to realise this and adapt, but also accept this as an opportunity rather than a constraint. Profitability isn’t the number one priority anymore and they now have the chance to fully develop their CSR programmes without facing many of the internal/external constraints they would traditionally have faced.
- Having a meaning actually means something. Modern brands have to stand for something and if they do, they will also stand out in the consumer’s mind. Your brand won’t just be a jewellery maker anymore – it will be one that aims to make diamonds cleanly and ethically by creating them in a lab instead of digging them out from thousands of meters below the ground. Standing for something will also give you a voice and help you break through the noise, reaching out to ever more consumers.
- Having a purpose provides a valid reason to exist. By this we mean existing in the customer’s mind, as well as in stores and shops – because the truth is, both are now linked. To truly connect with your customers, brands need to go beyond their bottom line. They also need to show that this bottom line serves a purpose and isn’t a finality. Don’t be scared to embrace a cause if you want to keep a place in consumers’ hearts and minds.
The largest event in e-commerce history? ‘Tis the season
By James Booth, VP Head of Partnerships for EMEA, at PPRO
Sometimes, change happens slowly. Other times it chases you down like that boulder at the beginning of Indiana Jones. In 2020, change is fully in boulder mode. And the holiday season is when it either catches up with you or you leap triumphantly from the temple entrance, golden statue in hand.
The shopping season kicks off on 11 November, with the 11.11 Global Shopping Holiday (formerly Singles’ Day). According to analysts, Alibaba and its merchants are on track to rack up $45 billion worth of sales on Singles Day alone , up from $38 billion last year . And if last year’s results are anything to go by, a large proportion of those sales will go to non-Chinese companies. Last year brands such as Bose, Estée Lauder, Gap, Levi’s, Nike, The North Face and Apple all made over 1 billion yuan ($143 million) on Singles’ Day .
Increasingly, US and European consumers are also participating in Singles’ Day. However, both markets shift into proper holiday mode with Black Friday on 27 November. And there is every indication that this, too, will be bigger in 2020 than ever before.
Adobe Marketing Insights predicts a 20% increase in e-commerce spend over the Black Friday to Cyber Monday weekend . Looking at the holiday season as a whole, Deloitte forecasts that seasonal e-commerce — online spending is expected to grow by up to 35%, compared with just 14% last year .
But that doesn’t mean you can just relax and wait for the holiday season sales to rack up. As well as driving customers online, lockdown has also disrupted brand loyalties. During lockdown more than two-thirds of customers in some markets have tried a new product or service and of these, a quarter do not plan to return to their old habits once lockdown has ended .
Old shopping loyalties have been upended, and that means their holiday-season shopping is up for grabs.
For instance, 43% of over-65s are now shopping online compared to just 16% before lockdown . For online merchants the grandparent present budget just became accessible. But to win your share of it, you have to provide a customer experience that this demographic will love.
Making the checkout page a priority
The question then, is how to prepare your merchants’ or your own e-commerce site for the holiday shopping season. It’s only a few weeks until Black Friday, so there’s no time to lose. You need to find out where gaps are in your customer journey, and plug them, before those customers run away to someone else.
The customer experience at checkout is particularly crucial. One of the surest ways to lose customer trust at the checkout, is by not offering shoppers’ preferred payment methods. According to research by PPRO, up to 50% of customers have abandoned a transaction because the merchant did not offer their preferred payment method .
It’s a question of localisation. Except in this case, you’re not necessarily localising for customers in a particular geography. Instead, you might consider localising for consumers in a particular age group who are now shopping online for the first time. Or customers from a range of demographics who have never shopped online for a particular category.
No one size fits all when it comes to global payment preferences
If you want to succeed in global e-commerce, you must offer the preferred payment methods for every market and demographic you want to win over.
Worldwide, consumers use alternative or local payment methods in more than 70% of all consumer transactions . These are the payment methods whole markets and demographics grew up with online and trust. Fail to offer them and you can have the best possible customer journey, but you’ll still lose basket after basket at the checkout.
With the acceleration of e-commerce and the influx of online competition, anyone who hasn’t optimised their payments offering will be desperately racing to catch up. Merchants need to think now about how they are going to maximise their revenue from what looks to be the biggest online holiday season ever. And payments is a crucial part of that conversation.
9. Original PPRO research.
Why insurance needs Tesla’s autopilot too
By Christian Wiens, CEO of Getsafe
Digitization is the industrial revolution of the 21st century. What does this mean for a data-driven industry like insurance? The answer is simple: Turn everything on its head and reinvent yourself under high pressure- the future of insurance is digital.
“Hello Timo, nice to see you. I’ll be glad to help you.” Carla records claims 24 hours a day, seven days a week and takes less than two minutes to evaluate and process them. Carla works for a digital insurer and is a chatbot by profession. While she is answering Timo, she contacts the bank in the background, which pays Timo back his money – the same day. This is not a dream, but already reality.
In the digital age, intelligent machines are the new workers on the assembly line, and data is the new raw material. This applies to almost all industries and applies in particular to the insurance world as insurance is based on mathematical models and probability calculations – in short: on data. The more data on which the calculations are based, the easier it is to derive and price risk profiles. Data therefore changes the core of the product “insurance” in three essential areas; the offer phase, in the event of a claim and in the long-term customer relationship.
In the offer phase, we will experience long-term personalized product bundles that fit customer needs much better – away from standardized and inflexible policies. If the insurer can better assess the needs of the customer on the basis of his past history or behaviour, he is in a position to put together tailor-made insurance packages.
For example, it would be conceivable to automatically adjust the insurance cover as soon as the customer’s life changes, for example if the customer gets married, buys a car or a property or travels abroad.
Customer experience in the event of a claim will also change dramatically. Fraud is still the biggest problem in the system, with 2 percent of the customer base causing 40 percent of the system’s inefficiency. According to estimates by the Association of British Insurers (ABI), one insurance fraud is detected every minute – amounting to economic losses of £3bn every year. Of the estimated worth of total fraud cases a year, £2bn goes undetected.
But what if insurers are better able to assess customers on the basis of data and know which customers they can trust – and which not? Credible customers could then benefit from immediate payment of the loss incurred, while the few “black sheep” would not even be accepted as customers or would be checked more closely in the event of a claim being reported.
The computer does not act uncontrolled, but within certain parameters defined by humans. This is comparable to processes in the manufacturing industry: Here, too, people define the exact parameters that are to be checked – controls are implemented by machines that are significantly less prone to errors. The situation is similar when it comes to insurance fraud: people make value judgements and specify which indicators can point to a case of fraud. They retain sovereignty over the entire process. The smart algorithm, on the other hand, is only the tool for evaluating and linking the many individual data points. Smart algorithms will reduce employees’ workload, but will not replace them.
Finally, digitization will also change the long-term relationship between insurer and insured. Tomorrow’s insurance will not only settle claims, it could even prevent them arising. A better database will not only make it possible to calculate the probability and amount of loss more precisely, it will also make it easier to calculate the risk of loss. Digital systems and sensors can also help prevent possible claims. Telematic tariffs in motor vehicle insurance are already moving in this direction by promoting a prudent driving style.
Sensors on washing machines and industrial plants or intelligent smoke detectors are one thing – monitoring people in the health sector is another. Some health insurers reward sport activities, for example, if the customer can prove this with smart fitness watches. It remains to be seen to what extent customers are willing to exchange this personal data for premium refunds. In the long term, the legislator will also be asked to take action to ensure that the solidarity principle is not undermined.
However, the danger of increasing surveillance is countered by a clear increase in customer service, individualised services and flexibility on the customer side: Digital insurers rely on customer’s self-determination and a positive insurance experience in an industry that sometimes appears to be immobile and non-transparent.
Digitalisation has reached the insurance industry, but has not yet shaken its foundations. That will change: Tomorrow’s insurance will have little in common with today’s structures and processes. The autopilot at Tesla will also come for insurance. Not all companies will be able to master this switch to become digital insurers.
Track and Trace and Other Lost Data
By Ian Smith, General Manager and Finance Director at Invu You, like me, were probably amazed by the now infamous...
Why ID verification is no longer a barrier to global growth in banking
By Barley Laing, UK Managing Director at Melissa Issues related to effective identity (ID) verification have restricted the global growth...
Digital Finance: Unlocking New Capital in Disrupted Markets
By Krishnan Raghunathan, Head of Finance & Accounting Services at WNS, explores how a digitally transformed finance department can give enterprises...
Beyond the bottom line: why brands must show they care to connect with customers
By Vadim Grigoryan, Partner, Lunu Over the past few years, we’ve witnessed an ever-growing activism among consumers, with public opinion...
O-CITY enters Kenya to drive contactless payments across Matatu bus service
Up to 10,000 buses to become cashless with O-CITY’s M-Pesa-based ticketing solution O-CITY, the automated fare collection provider by BPC,...
Nearly 14 Million1 UK adults more likely to spend on Black Friday than they were last year
Yolt launches evolved app to help shoppers save whilst they spend Across the UK, consumers are set to spend £6.4bn...
Christmas isn’t cancelled: European shoppers plan to spend more online this Black Friday
Half (52%) of European consumers plan to do Christmas shopping around holiday sales, including Black Friday, compared to previous years...
The largest event in e-commerce history? ‘Tis the season
By James Booth, VP Head of Partnerships for EMEA, at PPRO Sometimes, change happens slowly. Other times it chases you...
Optimum Finance bolsters its offering in three regions with two new sales directors and commercial director promotion
Leading invoice finance provider and fintech firm Optimum Finance has appointed two regional sales directors to fulfil the funding needs of SMEs...
Bank of Idaho Selects Teslar Software to Enhance Customer Service
Partnership enables bank to spend more time with borrowers, better meet their needs Teslar Software, a provider of automated workflow...