Banks and financial institutions are now embracing Big Data to conduct risk assessments, protect against cyber threats, identify untapped markets, and streamline their normal day-to-day operations. Among these banks is the multinational financial services company JPMorgan Chase & Co., which recently unveiled how it plans to leverage the power of Big Data.
In its 320-page annual report for the 2015 calendar year, JPMorgan Chief Executive Officer Jamie Dimon outlined the ways in which the banking giant will use Big Data to improve its business. More specifically, Dimon laid out at least six practical ways that JPMorgan intends to use Big Data, including the following:
To improve operational efficiency by analyzing errors in corporate banking.
To identify the cause of breaks in processes; thus, reducing the operational burden while subsequently improving client service and satisfaction.
In consumer banking, JPMorgan will use Big Data to improve underwriting, deliver targeted marketing to their audience, and analyze customer attribution rates.
To improve worker efficiency by focusing on prospective clients who are most likely to purchase their products and/or services. Dimon cites Big Data as assisting the bank in being able to identify twice as many high-quality prospects.
Identify problems within their internal systems while ensuring greater stability.
To detect and protect against fraud. Each years, banks and financial institutions lose billions of dollars to fraud. JPMorgan, however, is looking to combat this problem by using Big Data to detect and protect against fraudulent activities.
So, how does JPMorgan plan to accomplish all of this using Big Data? The NYC-based banking giant reportedly has more than 200 data analysts and scientists, whom the company collectively refers to as “Intelligent Solutions.”
“To best utilize our data assets and spur innovation, we have built our own extraordinary in-house big data capabilities – we think as good as any in Silicon Valley – populated with more than 200 analysts and data scientists, which we call Intelligent Solutions,” explained JPMorgan CEO Jamie Dimon in the report.
Of course, JPMorgan isn't the only bank that's using Big Data. In an article published by Forbes, it was revealed that Bank of America is also using Big Data to process and analyze customer data. According to Forbes, Bank of America uses Big Data to determine which of its customers have a credit card or mortgage who could benefit from refinancing their loan with a competitor. Using this information, Bank of America creates a customized offer if and when the customer contacts one of their centers.
Major financial institutions like JPMorgan and Bank of America have had access to enormous amounts of structured and unstructured data for a while now. While collecting and harvesting this data hasn't necessarily been a problem, applying it in a real-world, practical use has been a problem. But banks are finally catching up to Big Data, investing their resources into developing new technologies and systems that can not only gather data, but also put it to use.
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