Large financial institutions have between 50-100 petabytes of data, but less than 10% is readily accessible and less than 1% is actually used for data analytics according to big data specialist Abhi Mehta. Very few banks are fundamentally changing their architecture or being innovative in their technology, Tresata, CEO of Abhi Mehta said banks can't personalise offerings got 10-30 million people, while Google and Facebook can personalise communications for hundreds of millions.He expects to see more innovation in payments, which is the single largest revenue pool in banking, generating $200bn in profits, but expects to see competitors emerging in lending, trading and advice as well. Banking is heading for a future like a utility, heavily regulated with an 8-9% RoE in a government controlled model. Innovation will be outside the banks.
Large financial institutions have between 50-100 petabytes of data, but less than 10% is readily accessible and less than 1% is actually used for data analytics according to big data specialist Tresata. Very few banks are fundamentally changing their architecture or being innovative in their technology, Abhi Mehta, CEO of Tresata said banks can't personalise offerings got 10-30 million people, while Google and Facebook can personalise communications for hundreds of millions.He expects to see more innovation in payments, which is the single largest revenue pool in banking, generating $200bn in profits, but expects to see competitors emerging in lending, trading and advice as well. Banking is heading for a future like a utility, heavily regulated with an 8-9% RoE in a government controlled model. Innovation will be outside the banks.