Analysis of the Application of Big Data in Banking Sector

Since the State Council of China issued the “Outline of Action to Promote the Development of Big Data” in 2015, which proposed a top-level design for big data development from a long-term perspective, the related industry had ushered in a rapid way. At present, under the background of accelerating digital transformation and post COVID-19, the social and economic benefits of data assets, especially the value of financial data turn out to be more prominent. In this paper, we analyze four exploration aspects of commercial banks around big data application: constructing enterprise-level big data platforms, strengthening the capability of risk control, innovating financial products and services, optimizing business processes. Meanwhile, giving the typical cases for all of these practices, we illustrate how the bank's decision-making transformed from “experience-dependent” to “data-based” that enable banks to improve business performance, assess credit risks and allocate resources scientifically. Generally, we hold the view that big data technology has become an important means for commercial banks to meet the emerging financial demands, respond to the competition of the fintechs and the high-level opening-up trend. At last, this paper suggests banks enhance the core competitiveness through big data deep application with facing challenges such as insufficient implementation of big data strategy, lack of data governance system, imperfect organizational structure as well as scarcity of data mining talents.