The Data Revolution has led to Development of New IT Systems for Storing Large Amounts of Unstructured Financial Information

Like many other sectors of the global economy, the financial services industry is experiencing what many consider to be a data revolution. The international banking sector (along with other major industries) generates large amounts of user data when handling hundreds of billions of transactions. Data is also created during other types of interactions such as sending emails, in the form of call logs, social media posts, and video conferencing (and in many other ways).

Banking institutions have been using this data to create various products and services that aim to be more personalized and which can cater to consumers’ digital lifestyles.

The COVID-19 pandemic has accelerated the shift towards all-digital platforms and services, particularly in the banking sector, which has further increased the amount of new data being generated. This significant growth in data has presented different opportunities and challenges for banking platforms and other financial service providers, which are quickly adding new IT solutions to support their operations.

Data warehouses serve as repositories of structured data obtained from many different sources. This data has been cleansed and classified into specific categories, and then gets stored in complex tables. Data warehouse systems have been a part of enterprise IT architecture, serving an important role in the supervision of various activities, and are also used in business intelligence and for reporting purposes.

However, with recent advancements in mobile technology and the introduction of digital banking platforms, data has become a lot more integrated into peoples’ daily lives. Consumers are generating a lot of unstructured data that financial service providers need to effectively process.

This growth in the amount of unstructured information has made it quite challenging for organizations to manage because traditional data warehouses are not suitable when it comes to maintaining this new type of data. Data warehouses are also very costly to maintain and can cost banks millions of dollars (or more) in additional investments.

Traditional data warehouses might also not be able to provide real-time analysis of information, which may be required during various decision-making processes. These issues suggest that older warehouses might not be able to meet the service level agreement (SLA) requirements such as real-time anti-fraud alerts and related measures.

To address the financial industry’s changing IT requirements, Huawei has been working cooperatively with various business partners to offer end-to-end data plane solutions that are customized for its clients.

As reported by Fintech News, the tech giant is reportedly one of the only providers in the industry to offer a converged data lake solution that can effectively integrate a distributed data warehouse platform (FusionInsight DWS), a Big Data platform (FusionInsight MRS), an artificial intelligence development solution (ModelArts), as well as a distributed storage solution.

Huawei’s Converged Financial Data Lake platform aims to assist banks with streamlining their capabilities to provide better customer acquisition tools and various real-time risk controls. The platform has been designed to assist financial service providers with conducting more efficient operations and lets them intelligently develop customized products.

There’s a growing number of financial institutions that are leveraging open distributed architecture so that they can begin decoupling software from hardware. They are also looking to use these solutions to improve their processing capabilities in order to handle large amounts of data, while supporting platform expansion.

It’s worth noting that Huawei had been hit with sanctions from the Trump-led US Administration and continues to face pressure from US’ allegations that its services are a threat to national security. Despite these issues, Huawei was ranked fourth among China’s most valuable companies back in January 2020.

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