Role of data and information

within the financial Services

sector
 Introduction
Data analytics has become a crucial feature in this current technological
time and there are so many organizations that are incorporating the various
form of data science. The banking industry is one of the sectors that have
invested heavily on the data analytics and this has brought about a lot of
changes on the banking sector operations. The digitization of the finance
industry features technologies such as Machine Learning, Big data, AI and
Role Of Data and the Cloud. For instance, at the moment, a lot of operations are optimized
and streamlined to increase efficiency and competitiveness cause of the big
Information data analytics operations.
The advent application of the data analytics has seen its application on the
within the predicting trends that might affect the business. On our presentation we are
going to focus on the role of data and information within the Financial
Financial Services Sector. We will focus more on the NatWest Bank which is the largest
financial institution around the UK. The NatWest Bank has really invested a
Services Sector lot in technology and their latest developments was coming up with the
SnowFlake Technology.
The type of data collected.

The common type of data which is collected by the NatWest bank in the UK are 1st
Party data. This is data directly from their customers. For instance, we do have the
credit data from the customers. The credit data from the customers is used to
implement the Credit models. The credit models are not a new thing in the banking
industry, we had the traditional models which were deemed to be inefficient. At the
moment, the credit models which have been developed based on data analytics are
more efficient cause they are using structured data. The other data is the second
party data which involved the risk analysis and monitoring data. This is data which is
used in the development of the dynamic risk models and advanced analytics. This
data seems to be more resilient to significant external changes. It’s always essential
for the fraud detection.
The type of data
collected.

The second data which is very important is the

Customer Lifetime data. The Customer
LifeTime data is very essential in providing the
insights about the future revenue sources
from the customers focus perspective. This
data will unlock all the insights about your
audience and the financial service industry.
This in turn will provide a 360-degree view of
the customer’s profile and behavior. Under
this data, they usually segment the customers
into different personas. This includes;
demographics, common needs and behavioral
patterns. This will then be predicted using AI
and Machine Learning techniques.
The type of data
collected.

The last data to be collected by the NatWest

Bank is the Operational Costs data. This data
is designed to improve the operational
efficiency. This data is very essential in
allowing the Bank to have a look at the
organization’s performance metrics and
insights before making any decision. From
this they can always identify the areas
which they require to be improved based on
the past and the current results.
The type of data collected.

The last data to be collected by NatWest is the

Operational Costs data. This data is designed to improve
the operational efficiency. This data is very essential in
allowing the Financial institutions to have a look at the
organization’s performance metrics and insights before
making any decision. From this they can always identify
the areas which they require to be improved based on the
past and the current results.
 Traditional Market research makes use of the data for
Traditional storage purposes and cumulating specific amounts of
knowledge. They also end up using multiple methods
Market to gather a great depth of information collected. On
the other hand, big data is a bit complex. The data is
Research vs Big being collected based on the online behavior of
consumption using the most advanced software and
Data. technology systems. A correlation analysis is always
done to determine the behavior patterns.
 NatWest Institution do use various technique to collect big data. These

Collection and techniques include;

 The use of endpoint devices within IoT ecosystems.
The use of marketing firms which are providing second and 3rd part
Storage of

information.
 The use of Social media posts from the existing and prospective customers
 The use of multiple additional sources such as smartphone locational data.

Information. We do have a specific process through which data can be identified and stored.
This process is always done in the following three basic steps;
 Extraction; this is where data will be taken from its original location.
 Transformation; this is when data will be cleaned and normalized for the
use.
 Loading; this is where data will be loaded and moved to the data
warehouse or the database.
There are various challenges that are going to be handled during data
collections. Most of these challenges are the technical challenges and at times
the compliance challenges. We also have a challenge in the privacy issues and
thus its advised that business needs to have a strong protection on such like
issues.
Big data will always come from the daily financial process,
customer information and the business records. Based on
Impact of
the big data which has been provided there are various Technological
models which are being developed that assist in the
decision-making process. For instance, NatWest do use
Development on the
these models to determine the risks associated with the Role and Use of data
loans that they take. This can be implemented through the
credit scores, credit card utilizations, the amount of
in the Business
money owned on the different credit cards and the Decision Making
amount of money owed on the different type of credit.
Based on this information, they can make a critical
Process at NatWest
decision on the risks associated on giving out credits to Bank.
customers. In addition to that, the development of
machine learning models can be able to predict the
financial and stock markets. From this they can make an
informed decision.
Most of the information from NatWest bank is collected on a
daily basis and its in a wide range of tasks. It’s used to determine
the rate of performance from the employees. Its also used to
determine the credibility risk that the bank is exposed to before How Information
making the decision of providing you with the loan. The growth
of technology has also seen most of banks being exposed to
and Data is used
Financial fraud. Therefore, using the data, they can determine within the data
the levels of fraud from the scammers. within a day to
day operations.
 Abkenar, S. B., Kashanib, M. H., Mahdipour, E., & Jameii, S. M. (2021). Big data analytics meets social

References media: A systematic review of techniques, open issues, and future directions. Telematics and
Informatics, 57. doi:https://doi.org/10.1016/j.tele.2020.101517
Ain, N., Vaia, G., DeLone, W. H., & Waheed, M. (2019). Two decades of research on business
intelligence system adoption, utilization and success–A systematic literature review. Decision
Support Systems, 125, 113113. https://doi.org/10.1016/j.dss.2019.113113
Akoka, J., Comyn-Wattiau, I., & Laoufi, N. (2017). Research on Big Data – A systematic mapping study.
Computer Standards & Interfaces, 54(2), 105-115. doi:https://doi.org/10.1016/j.csi.2017.01.004
Akter, S., Wamba, S. F., Gunasekaran, A., Dubey, R., & Childe, S. J. (2016). How to improve firm
performance using big data analytics capability and business strategy alignment? International
Journal of Production Economics, 182, 113-131. doi:https://doi.org/10.1016/j.ijpe.2016.08.018
Alahakoon, D., Nawaratne, R., Xu, Y., De Silva, D., Sivarajah, U., & Gupta, B. (2020). Self-building
artificial intelligence and machine learning to empower big data analytics in smart cities. Information
Systems Frontiers, 1-20. https://doi.org/10.1007/s10796-020-10056-x
Alam, T., Khan, M. A., Gharaibeh, N. K., & Gharaibeh, M. K. (2021). Big data for smart cities: a case
study of NEOM city, Saudi Arabia. In Smart cities: a data analytics perspective (pp. 215-230).
Springer, Cham. https://doi.org/10.1007/978-3-030-60922-1_11
END