Following the financial crisis of 2009, financial institutions all over the world have increased their focus on customer risk management. To achieve this, financial organisations are laying down rules for credit risk and liquidity ratio levels, including enforcing regulatory acts such Basel III that has increased the amount of customer data for analysis.
Basel III has brought new compliance requirements, which places greater emphasis on governance and risk reporting across global organisations requiring banks and insurance companies to store and analyse many years of transactional data for customers.
New models of proactive risk management are increasingly being adopted by major banks and financial institutions. Big data and analytical techniques play a salient role in strengthening risk management in areas such as card fraud detection, financial crime compliance, credit scoring, stress-testing and cyber analytics. Through data analytics Banks can analyse the factors that cause borrowers to default on loans and craft new programs to circumvent those factors.
Data management challenges
Big data management and analytics has become a very crucial tool in risk management in banking sector. But…
