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Virtual Banking: A Guide to Innovation and Partnering by Dan Schatt, Renaud Laplanche

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Chapter 4 Innovating with Big Data and Open Platforms Competing in a World of Unlimited Data and Storage

“Big data will spell the death of customer segmentation and force the marketer to understand each customer as an individual within 18 months or risk being left in the dust.”

—Ginni Rometty, CEO, IBM

How does a financial institution compete in a world where data are instantly accessible to most and storage is virtually unlimited? More data and more archiving services won’t necessarily help a financial institution serve its customers better unless the data can be leveraged in a unique way that brings insight to customers. Is your bank in the best position to come up with new and innovative uses of your data? If not, you might want to consider partnering with someone who can take new forms of data and make them valuable and insightful for your institution and for your customers. In this chapter, we’ll talk about how financial institutions can get the most out of data and why data and an open platform often go hand in hand. We’ll talk about some of the learnings PayPal had when opening its platform and how better use of data became one of the primary benefits as a result. Seventy-one percent of the industry is already using big data and analytics, up from 36 percent just two years ago, according to a survey by the University of Oxford and IBM’s Institute of Business Value. In today’s world, the probability of achieving the best data insights alone is very low, as so many financial ...

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