Banking on Big Data:

Harnessing Big Data to drive valuable

BigDecisions
Ian West
Head of Enterprise Information Management
| 2014, Cognizant
Key Discussion Points
2
BIG DATA AND ANALYTICS IN
FINANCIAL SERVICES
KEY TRENDS SHAPING YOUR
INDUSTRY
ABOUT COGNIZANT
BIGDECISIONS2.0
TM
REAL WORLD EXPERIENCES
| 2014, Cognizant
Cognizant
From internal consulting unit to a market leading Global Services Provider
1223+ Active Customers
$8.84 Billion
2013
178,600+
Employees Globally
20, 000+
Projects in 40 countries
25+ Regional Sales Offices
75+ Global Development Centres
Financial Services: 42.3%
Healthcare: 25.4%
Retail, Manufacturing & Logistics:
21.1%
20.4%
3
| 2014, Cognizant
4
Emergence of Big Data and Analytics
Increasing belief in its potential to create competitive advantage
of banking organisations
globally have invested in big
data
1

>34%
Between 2012- 2017,
the uptake of big data
analytics amongst
larger enterprises in the
UK will more than
double to ~30% of
organisations
3
30%
of large global companies will
have adopted big data analytics
for at least one Security or
Fraud Detection Use Case by
2016 (up from 8% today)
2

25%
| 2014, Cognizant
5
Big Data and Analytics drive business value
Leveraging
the power
of big data
& analytics
to drive
valuable big
decisions
Business value
Big Data & Analytics
Traditional Analytics & BI
Improved understanding of customer
Information based business decisions
Deeper insight into risk
Increase revenue
Reduce cost
Mitigate risk and ensure compliance
Additional data sources to enrich customer profiles
Variety of unstructured information to better
understand context
Real time analysis
Structured & transactional customer data
Ad hoc & retrospective pattern analysis
| 2014, Cognizant
6
Corporate Listening - Voice of our customers
Identify the right customer
for the right product at the
right price at the lowest risk
to improve revenue and
profitability
Deal with aggressive and
innovative non-bank
competitors by leveraging
data as an asset
Develop new and reliable
sources of revenue & increase
business value of customer
relationship through analytics
Incorporate mobile banking as
a regular delivery channel &
develop a strategy around
social media to personalise
engagement with customers
Achieve & monitor
regulatory compliance across
Line of Businesses and
Business Functions
| 2014, Cognizant
7
Big Data & Analytics can be leveraged across
multiple areas in the Financial services industry

Improving branch & channel efficiency and
effectiveness
Helping to drive high value, high touch
traffic back to branches
Customer
Centricity
Improved targeting of customer segments
Moving from a product to customer focus
Better management of sales leads across
channels
Inclusion of customer incentives to
influence behaviour
Reduce Costs &
Increase
Revenues
Branch, ATM
Online, Mobile
Omni-channel
Channel management & integration

Everyones
Mobile
Sentiment analysis
Social media analysis
Credit analysis
Customer profitability & lifetime value
Predictive analytics
Customer
Insight
Ability to process increased volume & variety
of data
Cost effective technology
Technology
Advancement
Risk & capital management, Risk adjusted
pricing
Portfolio risk management, Fraud/AML
Risk &
Compliance
Management
| 2014, Cognizant
8
The Data You Need is Everywhere Around You!
Big Data and Analytics Opportunity in Banking
To deliver the best customer experience, banks need to
Augment internal data with external data assets to
enrich customer profile
Provide customized products and services
Personalise communication in a timely, relevant and
impactful manner

Customer profile
integration
Customer
experience analysis
Customer preferences
& behaviour analysis
Customer sentiment
analysis
| 2014, Cognizant
Big Data and Analytics Opportunity in Retail Banking
Breaking Siloes and Analysing Raw Data from Multiple Sources

9
Example Outcomes
Profile Contact History Transaction Models
Big Data
Analytics
Customer
View
Integrated Web
Intelligence
The Web Visit
What searches?
How did they get you?
Page navigation
Research
What do they look at?
What do they search?
Do they dig deeper?
Purchase Path
Which product?
How far into the process?
Whats looked at during
purchase?
Social Media
Verbatim
Blogs
Tweets
Postings
Reviews
Internal Text
Data
Research
Verbatim
Ad-hoc
Longitudinal studies
NPS/Satisfaction
Other Direct Contact
Branch interview Records
Branch Enquiries
Manger Notes
E-Mails
Call Center
Queries
Complaints
Service issues

Micro-segmentation
Higher Quality Leads
Better Fraud Detection
More accurate Propensity
Models
Multi-channel Customer
Sentiment
| 2014, Cognizant
10
Changing Regulatory Environment
Financial organisations leverage Big Data Analytics
Cost-reduction programmes,
de-risking & price
adjustments

Manage ROI in the new
environment

Reduce capital and liquidity
inefficiency

Balance-sheet restructuring

Business-model adjustments
Achieving compliance with
evolving regulatory norms

Strategic planning for the
BASEL III world

Capital & risk strategy

Implementation
management
Challenges Response
Compliance
| 2014, Cognizant
Risk Management Office (RMO)


11
Predict risk &
provide
guidelines
A scientific,
intuitive
statistical
model
Risk Cataloging
Risk
Analytics
engine
Unique risk
management
model
Identify the right
project
non-invasively
Entry Strategy Solutions Account Expansion Solutions
Rules-based
project evaluation
engine
Enhanced data
quality pertaining
to schedule, testing
and effort
Help create a
model for future
engagements
Integrated scientific,
statistical & human
intelligence to predict risks

Single authority
for proactive
Risk
Identification
for existing &
new age
delivery
methods taking
a holistic view
across an
engagement
lifecycle.
Vision
RMO - One stop shop for risk expertise through proactive risk identification, tracking & mitigation of program risk including financial,
customer, execution, governance, solution and stakeholder management
| 2014, Cognizant
Risk
Profiling
Big Data Use Cases in Financial Services
12
Business Impact Big Data Capabilities
Customer Churn
Timely prediction and reduction of churn

Include customer contact (e.g. call centre transcripts) & social
media data
Analyse customer sentiment
Model and score churn propensity
Cross and
Up-selling
Efficient and precisely targeted marketing
Increased Cross- and Up-sell
Analyse & model response behaviour
Select campaign addresses based on micro-segmentation
Data Offloading
Performance & scalability Increased performance and storage
Enabled power of analytics on wealth of data
Segmentation
Client lifestyle analysis and spend
prediction
Increased customer satisfaction
Advanced analytics to enhance client lifestyle analysis and
profiling
Predictive analysis of spend
Domain
Comprehensive risk profiling
Improved risk evaluation
Refine risk profiling models frequently to adapt to dynamic
business environment
| 2014, Cognizant
Introducing
BigDecisions2.0
TM
13
| 2014, Cognizant
BigDecisions2.0 Business Solution Platform
Components providing agile delivery through focused business
apps
14
Robust Core Platform

Acquire, Manage and Use
Any-Data
Rapid Value Delivery

Flexible, Agile & Economical
Relevant Business Apps

Intuitive, Focused and Bite-
size BI & Analytics
| 2014, Cognizant
BigDecisions2.0 Business Solution Platform
A new paradigm for seamless, end-to-end information
management & analytics value
15
Sophisticated BI &
Analytics
Leverage
Universal Data
Select proven
Technologies
Agility for
Business Change
Easy to Build and
Manage
Spend time on BI &
Analytics, where it
matters most (not on
building infrastructure)
Manage all-
structures of data
with Universal Data
Management
Deliver subject
areas in weeks, not
in months or years
Faster business
value realisation
with proven set of
technology options
Install, configure
& customize,
dont develop
| 2014, Cognizant
Business App | Risk, Fraud & Compliance
16
Executive Dashboards around BASEL II/III and
Adaptive Revenue Assurance
Machine-learning modules for fraud detection
and to strengthen entry to the real-time
analytics market
Predictive analytics and new features to cover
areas in risk and governance prediction
Smarter fraud detection capabilities reduce losses
and improve recoveries
Direct fulfillment of all CRO needs, providing them
with business discovery tools and services
Proactive risk management across LoBs and product
lifecycles with stress testing and scenario analysis
RFC Data and Analytics Platform
Flexible systems and processes to
accommodate changing regulatory
requirement
Holistic risk assessment, fraud detection and compliance application that ensures adherence to constantly
changing regulatory requirement
What?
App Features Benefits
| 2014, Cognizant
Representative Experiences
17
Fraud Detection &
Prediction @ Global
Payment Processing
Company
The accuracy of the fraud detection
process was improved (~15%) and
the speed of >400 million
transactions

Detect frauds within seconds and
predict frauds within
8/16/32/48/72 hrs
Enhance fraud detection and
prediction algorithm
Historical data set was stored in a
Hadoop cluster (100+ nodes)
Ran several algorithms to prepare
clustered data
Neural network algorithm was
developed
Real-time Reporting
@ Leading Financial
Services Company
Response time was significantly
improved

Substantial performance gains were
realised in data service aggregation
scenarios by reducing the number
of data service calls from RTM
PoC for conversion from Cognos to
BOBJ
Infrastructure Installed Hadoop,
HBase, MySQL Performance tuning
NoSQL database for real-time
service
Big data archive management for
cost effective archival and retrieval
20% improvement in lead conversion

Operational cost savings of 10 20%

Greater NPS and customer satisfaction
Captured last 55 years of customer
data involving 23 Million Customers,
13 Million Policies, 60 Million
Claims, 8500 Active Products
Segmentation of customers
leveraging machine-learning
techniques
Churn analysis at each individual
cluster level with combinations of
net-worth, transaction volume and
churn rate
Customer Segmentation
and Churn Prediction @
Leading insurance
major
| 2014, Cognizant
In Summary
18
BigDecisions Business Solution Platform: A platform-based approach to Universal Data
Management with a suite of business ready analytical apps


Big Data and Analytics is a key driver in the financial services sector to help businesses run
better & run different

Start small, think big. ROI on Big Data and Analytics is often too big to ignore
| 2014, Cognizant
19
BigDecisions
TM
Business Solution Platform
http://www.cognizant.com/enterprise-analytics/big-data
Thank You
| 2014, Cognizant
Big Data Solution Frameworks & Platforms
20
Pave the way to success
Scorel
Stock price analysis
with prices, market
feeds, analyst
quotes
iLASER Longitudinal
Analysis for
Customer
behaviour

GReco
Graph DB based
high performance
recommendation
engine
MIPS/DW
Offloading to Big
data platforms for
performance and
cost benefits
Delivery through BigDecisions 2.0 Platform A Holistic Approach to EDM 2.0!
Industry Use Case Libraries
Solution Components
Reference Architectures
Proof of Value
Technology Frameworks
Proof of Concept
Big Data Analytics Value Assessment Framework (BAVA)
SmartNode
Unified access to
big data platforms
for BI/Analysis
tools
iSMART
Integrated Social
Media Analytics
and Reporting
PayNet Graph
Analyse Payment
networks for Risk,
Fraud and targeted
marketing
Churn Analysis
using big data
and machine
learning