What are the examples of successful Big Data projects in banking and insurance?

Future of IT: Bank and insurance are well equipped to take full advantage of Big Data: data, their servers are full of them ... Improved responsiveness, customer loyalty, customization of offers, Fraud ... What concrete benefits can be derived?

The banking and insurance sectors will not be the poor parents of Big Data. According to an IDC study, French companies could benefit from an "additional value potential" of 54 billion euros in 4 years, and the financial sector could benefit from 20% of this windfall (second step of the podium, Behind industry, 24%, and telecoms, 15%).
It is true that the financial sector, by its very digitized nature, is destined to benefit to the maximum from this phenomenon, and the benefits that can be derived from these two Big Data sectors are multiple.

Generate additional revenue and ... detect fraud

This technology notably detects fraud, optimizes processing times, generates additional revenue through better customer knowledge, and improves predictive analytics. This last point being very interesting to limit the "churn", that is to say the departure of the customer for a competing bank.

According to Abdessatar Hammedi, an analytical CRM analyst at LCL, "only 20% of the data is structured in such a way that it can be stored and operated by a standard database management system (DBMS). Big Data will treat the data as a whole and see the truths behind the 80% unstructured data. "

In concrete terms, what are the expected results? Damien Cudel, market data platform manager for Microsoft France, cites the case of the Royal Bank of Scotland: "This bank integrates more than 50 terabytes of data each day from several sources: it took more than three days for With the deployment of the "massively parallel" APS platform, they were able to reduce these three days to a few minutes ".

In the area of insurance, the stakes are just as important. The Big Data will enable companies in the sector to better capture and retain customers, better segmentation of supply, more effective control of fraud, improved claims management and better response to solvency requirements - In particular those required by the Solvency II Directive.

Big Data can increase customer satisfaction

Among the success stories, a study by CapGemini Consulting cites the example of insurer Hiscox, which has been able to customize the online experience of its customers so that they can find the product more easily. At Metlife, a wise use of the Big Data enabled the agents of this insurer to visualize all the transactions of each client on a single screen.

The Big Data will also benefit customers: "With Allianz Conduite Connexion, an embedded system that analyzes the driver's behavior, our insureds can benefit from a reduction of up to 30% if they improve their driving, "Said Virginie Fauvel, member of the Executive Committee of Allianz France, in charge of digital.

But the systematic use of Big Data in insurance is not without raising ethical questions: for Osanne Houlle, Controlling Assistant at the Bank of France, "the Big Data could question the principle of mutualisation: Interest for the one who knows that he will not have a claim to pay an insurance premium in order to pool his risks with others? "

Be careful with FinTech ...

The vigilance and responsiveness of the financial sector remain in place as a Xerfi study points out that "new data driven models are already proliferating in the world of financial services and are supported by two categories of new entrants: start- Up of finance or FinTech, and the North American and Chinese digital giants ".
In short, against competition, an approach and agility of start-up remain for the classic actors of finance the best insurance.

By Laurent Cadixte, on zdnet - November 2nd, 2017