Pub. 3 2013-2014 Issue 5

10 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE JASON YOUNG PRODUCT MANAGER CSI NUPOINT Big Data Reaps Big Rewards When You Harness It W hen you hear today’s “it” term— big data—does it make you feel overwhelmed, or do you see an immense opportunity for growth? “In addition, dashboards provide at-a-glance views of an institution’s daily and monthly activities through trending reports and charts—and can even provide “what if” illustrations. For example, a bank could determine how its bottom line would be affected if 10 percent of its loans defaulted.” I hope it’s the latter, because that’s what big data will mean for those financial insti- tutions that learn to harness its potential to track customer behavior—and marry it with activity. In doing so, they can take their volumes of existing data and drill down to discover many customer-centric ways of increasing profitability, whether bankwide or targeted to each individual customer. According to a September 2013 Gartner survey, 64 percent of business respondents either have already invested in big data technology, or will do so within the next 24 months—and the banking industry was among the top three spenders last year. Fur- ther, cumulative big data spending for the period from 2011 through 2016 is projected to top more than $232 billion. Clearly, big data has made the shift from a buzz term