Big Data Strategies in the Chinese Banking Industry

by Hua Zhang, May 8, 2013
Industry Trends
Asia-Pacific

Abstract

Chinese banks are facing a challenge from Internet-based financial institutions, such as Aliloan, and P2P lending for unsecured loans. Such firms adopt Big Data technologies to improve risk management and customer segmentation abilities.

The Big Data challenge is essentially one of understanding customers. Banks can either go deeper into data applications or become marginalized.  In the report Big Data Strategies in the Chinese Banking Industry, Celent examines Big Data applications, use cases, and trends.

Many banks have already started trying to gain an edge. Big Data has been used to achieve event marketing and real time marketing in Bank of Communications and the credit card center of CITIC bank respectively; China Construction Bank has integrated its e-commerce platform and credit business; China Everbright Bank has established a social network information database; and China Merchants Bank has grown its small and micro loan market.

“Going forward, banks will utilize Big Data technologies to develop such businesses as risk-based pricing, real time interaction of data across multiple channels, enhancement of data quality, real time marketing, and P2P lending,” says Hua Zhang, Analyst with Celent’s Asian Financial Services Group and author of the report.

This report describes the market, looks at cases, and examines the industry’s growth potential. The report has five figures and two tables.

A Chinese version of the report is also available.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Challenges in the Big Data Environment

2

 

Data Size Will Multiply Sevenfold in Five Years

2

 

Gradual Deterioration of the Microenterprise Loan Market

2

 

Banks Are Becoming More Distant from Retail Customers

3

Big Data Application Scenarios

4

Examples of Big Data Application

6

 

Credit Card Center of CITIC Bank: Real Time Marketing

6

 

Bank of Communications: Event Marketing

7

 

China Construction Bank: E-Commerce and Credit

7

 

China Everbright Bank: Building a Social Network Information Database

8

 

China Merchants Bank: Small and Microloan

8

 

Aliloan: Platform, Finance, and Data

9

Trends

10

Leveraging Celent’s Expertise

12

 

Support for Financial Institutions

12

 

Support for Vendors

12

Related Celent Research

13

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