Case Study Part I: Using Data to Create a Competitive Advantage in the Banking Industry

United Savings Bank (USB) is a large bank with branches spanning the United States. They are already collecting information on their customers in the following systems:

Core Banking System

Online Banking

Lending System (Auto/Personal Loans)

Credit Card System

Mortgage Lending System

Insurance Policy System

Financial Investment System

They are interested in understanding how they can leverage this data, in addition to data gathered from other potential sources, to provide a competitive advantage in their market.

You have been asked, to present to the board, a discussion on how big data can provide USB with a strategic advantage.

Part 1: Environmental Analysis

The banking industry is impacted by changes in its external environment from political, economic, social, technological, environmental, and legal factors. These may not be controlled directly by the companies in the industry, but the companies nevertheless might be forced to alter their models, pricing, revenue, and cost structures, etc. in response to changing conditions. Knowledge of external environmental trends can help predict opportunities and risks for banking products.

1. Identify some of the questions you might have about the overall industry trends (political, economic, social, technological, environmental, and legal, or others). You might include questions such as, What affects demand for new car loans? or, Who is likely to seek a mortgage in the next five years?" or "How can we protect ourselves from fraud?" for instance. Identify at least one question for each of the environmental factors (political, economic, social, technological, environmental, and legal).

Part 2: Existing Data and Data Gaps

Envision a hypothetical customer who uses the different products identified above (banking, auto loans, credit cards, mortgage, insurance, and investment products).

Identify what information each of the data collection systems shown above might contain on the customer.

Identify any additional information you might want on individual customers that could help you answer the questions you identified in Part 1.

Create an ERD and a one page write-up explaining what information you likely have; what data you might need, and how this data might be used to generate a competitive advantage.