UK banks and financial regulatory bodies are currently being flooded with customer complaints about Payment Protection Insurance (PPI) and struggling to cope with the data deluge. The Telegraph recently reported on how complaints around mis-sold payment protection insurance are pouring in to the Financial Ombudsman Service at a phenomenal rate of more than 800 day, creating an enormous data backlog.
With the final bill for PPI expected to top £8billion, banks are scrambling to increase the number of employees dedicated to claims and ramp up their IT systems. It is likely that some banks are now looking to sign outsourcing contracts, but there is uncertainty around this as the mis-selling of PPI is hugely complicated. (more…)
There has been much discussion, particularly in the UK, about banks restricting the use of their investment and retail arms. The thinking process behind this is that investment banking is much riskier and so by drawing a clear line between the two, consumers will be better protected if another financial crisis should hit. (more…)
The big data debate is gathering momentum. Whilst organisations around the world contemplate how best to extract the most value from this data stream, others are contemplating what this trend might mean for society in the future. One example is a recent report on a study conducted by academics in the US, who used millions of news articles from sources around the world to feed a ‘supercomputer,’ charting the deterioration of national sentiment ahead of recent world revolutions.
The implications of such intelligence are rather staggering. Our world is engulfed in a stream of free information; so much so that we have the ability to predict landmarks with the potential to change society, economics and culture. It’s a futuristic vision – and one which will require a great deal of shaping if it were to become a reality. It does however, highlight the power of our information economy, and draw out one of the most important challenges for organisations – making the leap from a controlled data environment to the powerful world of big data.
The banking sector has been through the mill over the past couple of years. Yet as the sector works through the aftermath of the economic turmoil and seeks to innovate with customer service initiatives, many are taking big risks over potential loss of customer data.
Why? Well because adequate safeguards may not be in place to protect confidential data during the testing and development of new web-based services and applications. Worse though, keeping bank accounts secure is not the only risk they’re running – many may not be meeting the data privacy standards required by the regulators. (more…)