Banking on big data: A case study

Big data; how big,is bigger than what the traditional application can handle and this gives a feel about the quantum of data which is being talked in the big data. each day the technology is changing and everybody else is trying to cope up with the changes in the macro technological environment. banks do generate a huge amount of data in their ordinary course of business which was being dumped in the books almost a decade back. today the same data is being processed,analyzed and used for the benefits of the banks and customer. the data so generated can be used to customize services to the customer,to understand his needs,to design the most appealing marketing strategy to name a few. the big data,peta-byte,can be efficiently used to analyze the financial behavior of a customer. a customer,who would have defaulted on a loan,may relocate making it difficult for the banks to trace but he still might be active on the social media,which can be used to trace the customer. this is one odd benefit which big data has to offer. all said and done,there are challenges to implement the big data technology for any bank. the biggest constraint comes from the finance front where any new technology requires a huge outlay of cash in the form of infrastructure,training and development cost and data warehouse and storage cost. the researchers have taken a hypothetical,yet practical,example to demonstrate the possible benefits of the adoption of the big data into a bank by calculating the net present value of the project. the researchers have used multiple rates instead of a single rate to help the users to take the net present value according to the rate applicable to them. the internal rate of return has also been calculated to understand the return which the project is generated itself and the same can be used by the users to compare with their internal rate of return to judge the viability of the project. © 2006-2015 asian research publishing network (arpn).