Page 79 - ASR_Forewords
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Banking on Analytics
For the past few years, SMAC (where A stands for
Analy cs), has become the most known acronym
and Big Data has become the most commonly
usedterminBankingTechnology.
With the unprecedented growth in both banking
and payment transac ons in digital form, banks
have been becoming repositories of large
volumes of varied data piling up at a great
velocity.The morethe data available,moreinformed the decisions would be,provided
the data is analyzed quickly and meaningfully. More importantly, the hidden pa erns
aretoberecognisedandappropriatealertsraisedinausefulandusableway.
Banks have recognized the strength of analy cs in their Customer Rela onship
Management (CRM). A few banks have put in place reasonably matured analy cs-
based solu ons to improve their CRM. As the discipline of analy cs is ge ng enriched
with more sophis cated techniques, banks need to con nuously upgrade and update
theirsolu ons.
It is not just CRM alone; borrower assessment, risk management, cyber security and
several other important areas of banking func ons can use analy cs to improve the
overallefficiencyofbanks.Bankinghasreachedastagewhereitisdrivenbyanaly cs.
In the second Gyan Sangam mee ng of the heads of banks along with top officials of
Government and Reserve Bank India, there has been considerable discussion on the
use of analy cs. There is a consensus that analy cs is very useful to banks and that
banks have to evolve strategies to build analy cs-based solu ons for many of their
ac vi es. There have been sugges ons to prepare criteria to assess the degree of
implementa onandtheimpactofthesameonbanks'businessandprofitability.
It is in this background that IDRBT chose to bring out its current Staff Paper Series with
the theme of Analy cs. The three papers, prepared by Dr. V. Ravi, Professor; Dr. Sagar
Koparkar, Adjunct Faculty; and Dr. Nagesh B. Sristy, Assistant Professor, on three
important aspects of analy cs, I am sure, will help in increasing the usage of Analy cs
inBanking.
Feedbackiswelcomeatpublisher@idrbt.ac.in.
Date: December 2017
Place: Hyderabad
