How One Digital Bank Disrupts With Data

Digital BankAfter years of relative stability we are seeing a wave of massive bank restructurings. One of the causes is digital competition from new financial institutions that have no bricks and mortar, and more importantly do not have many accumulated layers of IT technology slowing their ability to respond to customer needs and market conditions.  Tinkoff Bank is a classic example of a disruptive startup that is shaking up established, incumbent firms in its industry.

Tinkoff is applying competitive pressure for others in the industry to use data to better focus on customers, provide better services, and use data for competitive advantage.

Founded by Russian entrepreneur Oleg Tinkov, Tinkoff appeared in 2006 as an Internet-only bank. In November 2015, it became the second-largest player in the Russian credit card market, with a market share of 7.7 percent.[1] Built on the Capital One model, it offers customers credit, debit and prepaid cards, deposits, mortgage products and more. Tinkoff focuses on mobile services and offers special apps.

Informatica has been working with Tinkoff for some time, and we’re helping the bank tackle some ambitious goals: To improve its IT infrastructure, learn more from its data, and act faster on those insights.

It’s one of the things that strikes me most about our new case study with Tinkoff: that they were able to imagine a new bank from the ground up that focused on types of customers, types of preferred interactions, and types of services that those customers wished that their bank would provide.

As a digital disruptor Tinkoff looked at itself and said, “We need to be even more disruptive.” So what does that mean for the long-established player? It means that when the most innovative competitors won’t rest on their laurels, you’ve got to work just as hard to move forward.

Tinkoff_case_study_image_blog7Read how Tinkoff Bank innovates with great data

Data and analytics drive decisions at Tinkoff Bank

Another striking thing in the case study is the goal Tinkoff’s leaders have set: to make 100 percent of its data available for decision-making. That’s an ambitious goal, and it goes well beyond having a Hadoop cluster or any number of data warehouses to hold all that data. Tinkoff is accomplishing the goal by managing and governing all that data.

Tinkoff has created a classic “bimodal environment” with traditional structured data and non-traditional unstructured data. (Learn more about ‘bimodal’ in Gartner’s paper, “The Integrator’s Dilemma: Can a Bimodal Approach Balance Integration Agility and Control?”) The bank has built a data management and analytics architecture that bridges both worlds for competitive advantage. With more than 150 terabytes of unstructured and semi-structured data on Hadoop, and 30TB of traditional, structured data in its Oracle and Greenplum databases, Tinkoff is dealing with a great deal of data complexity and delivering business insights that drive competitive advantage.

Traditional banks seeing the power of data and analytics

For many years, financial services firms were slow to address data as a shared resource that needed to be managed by a common data management platform and architecture. But the problem is being recognized; I recently spoke to executives at a major bank who told me they had more than 100 data warehouses, each custom-built to address a specific problem. They’re looking to build a shared services architecture across the entire organization to simplify their data environment, speed data management productivity, and accelerate their ability to react to real-time conditions.

Other banks we’re working with have already made considerable changes to address the new era.  Royal Bank of Scotland has done a lot of restructuring of its data infrastructure, and as a result is turning one of the world’s largest banks into one of the most personal.

Tinkoff is not just pursuing the disruptor’s route for data management. It’s pursuing the only route: creating a coherent, well-governed infrastructure that powers both data science innovation and the operationalizing of business-decision-quality data.

Give the Tinkoff Bank case study a read and see what it can be like to maximize the business value of your data.

Tinkoff relies on a number of Informatica solutions to fuel its analytics engine with great data. Our Informatica PowerCenter data integration solution helps Tinkoff to power its analytics with data that is clean, complete, available, governed, and secure.

We’re also just putting the finishing touches to a new PowerCenter demo video. I’ll reveal some more about the video in an upcoming blog post.

[1]  Tinkoff Bank, “About Us” web page.