Big Data : a real challenge impacting banks?
Edwin Yuen, chief analytics officer, Basel Implementation Office, Bank of China,Hong Kong, explains Big Data and how banks are rising to face the overflow of information. March 01, 2012 | Edwin YuenBig Data are datasets with sizes that are on the order of terabytes, exabytes and zettabytes, which are considered too large to be processed by relational databases. Data of these sizes usually originate with Web searches when querying very large distributed aggregations of loosely-structured data. In the IRB Programme Development and Implementation within the Bank of China Hong Kong, data is processed at a detailed credit facilities level, resulting in a database which size exceeds 5 terabytes. This customer data consists of a Capital Adequacy Reporting (CAR) database where the risk weighted asset RWA is calculated, a customer credit rating database which comprises results of financial spreads of customers’ annual financial statements and the bank’s assessment of customers’ non-financial data to determine the chance of a customer defaulting on loan re-payments. The customers’ non-financial risk assessments involve processing data ranging from factual to behavioral data. The CAR database would receive inputs from the bank’s other core banking system which includes customers’ credit limits, customers’ banking facilities and its draw downs, interest calculations, tracking and the valuation of customers’ collaterals pledged with the bank. The following diagram ... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Data & Analytics, Data Management, FSI Customer Relationship Management , Risk & PerformanceData & Analytics,Data Management,FSI Customer Relationship Management ,Risk & Performance, Data & Analytics,Data Management,FSI Customer Relationship Management ,Risk & Performance, Keywords:Big Data, Data Retrieval, Data Warehouse, CRM, BCP, SAN, KYC, AML, Edwin Yuen, Bank Of China HK Big Data, Data Retrieval, Data Warehouse, CRM, BCP, SAN, KYC, AML, Edwin Yuen, Bank Of China HK
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