Deutsche Bank, one of the biggest names in investment banking, is betting heavily on analytics and it’s launching its own enterprise analytics capability. The new efforts consist of analyzing millions of rows of data in order to identify and assess opportunities and possible improvements in their clients’ securities settlements.
The enterprise analytics capability of Deutsche’s Securities Service will be live starting November 2018 and it will enable daily data analysis on securities transaction. According to the bank’s release plan, the new capability will first roll out on the German market and it will then spread to cover the rest of the bank’s operations.
Deutsche believes this move is key to unlocking the value behind the huge repository of transaction data, which details the holdings and movements of cash, securities and other instruments in and out of client accounts.
The new capability was designed in close collaboration between Deutsche Bank’s Securities Service team and its Data Labs in Dublin.
The bank’s bet to leverage the power of analytics to analyze and extra insights is a testimony that data the data analytics industry is extending its reach and touches every sector in the economy. The huge potential to optimize and extract insights can boost the revenue and efficiency of any business that works with data.
For the banking industry, adopting analytics capabilities is not something new, but banks start to leverage them at scale, creating new business opportunities for analysts.
The global big data analytics in banking market was valued at USD 7.19 billion in 2017 and is expected to reach a value of USD 14.83 billion by 2023, at a CAGR of 12.97%, during the forecast period (2018-2023), according to the market reports.
Deutsche’s new endeavor also consists of consolidating data from a complex landscape of systems and databases onto a new scalable platform and then integrating it with business analytics capabilities
“This is a ground-breaking launch for Deutsche Bank and the wider banking industry,” says Fiona Gallagher, Deutsche Bank’s Head of GTB Securities Services.
“There has been a lot of media attention surrounding technology companies moving into the banking space but this move sees us flex our own muscles when it comes to an area traditionally in the technology domain. We have the data, we have the technological and analytical capabilities via our data labs and of course, we have the banking expertise – putting us in a strong position to dig into client data in a way that’s yet to be fully explored in Securities Services.”
Deutsche Bank’s mountains of data have the potential to yield insights that impact all areas of its internal and client-supporting activities. For example, one initial use case identified by the bank was about analyzing clients’ intraday cash liquidity utilization, providing insights that enable them to optimize their available liquidity, reduce their funding costs and maximize their returns on cash.