Introduction

In July, I had the privilege of addressing the second annual Big Data and Analytic conference in Johannesburg. Focused on Southern African banking and insurance representatives, my presentation aimed to shed light on the challenges hindering the implementation of big data in our market.

Although not a bank employee, my insights are derived from conversations with various contacts in the banking and insurance sector.

What is stopping big data adoption in South African financail services from Gary Allemann

Understanding Big Data: Moving Beyond the Confusion

One of the key obstacles banks face in adopting big data lies in the very definition of it. With numerous BI vendors and IT giants presenting their solutions as big data, confusion reigns supreme.

The classic 3 V’s definition (a COMBINATION of Variety, Velocity, and Volume) by Doug Laney still stands as a solid technical test. Simply put – if you can do it with existing SQL-type technology then it is NOT big data. But it is time to transcend this and define big data by its ultimate benefit: the ability to deliver valuable insights more quickly.

Identifying Suitable Applications: Unlocking Big Data’s Potential

Looking at case studies from industry leaders, it’s evident that customers have moved beyond mere IT experimentation with big data. Successful applications range from fraud prediction and churn reduction to risk data aggregation. Unfortunately, in South Africa, we are still in the early stages of experimenting with tools like Hadoop. The clutter and confusion surrounding the definition of big data make it challenging to identify the most promising opportunities for leveraging big data in financial services.

Skills Shortage: The Need for Simplicity and Adaptation

Hadoop’s technical requirements present a real challenge in South Africa due to a lack of skilled professionals in the market. Moreover, the rapidly evolving Hadoop ecosystem makes it difficult to keep up-to-date with the latest developments. To address this issue, adopting simpler tools that shield users from complexity is paramount, as is a focus on data analytics and BI training.

What’s Hindering Widespread Adoption in South Africa?

The obstacles discussed above play a significant role in hindering the broader adoption of big data analytics and techniques in South Africa. It’s crucial for banks to overcome the confusion surrounding big data, identify suitable applications, and invest in acquiring the necessary skills.

Conclusion:

As the world of big data continues to evolve, it’s essential for banks and financial institutions to adapt and embrace the power of data analytics. By understanding the true essence of big data, unlocking its potential through suitable applications, and addressing the skills gap, South African banks can harness the full benefits of big data analytics to stay competitive and drive growth in the digital era.