As one of the industries with the highest degree of informatization in mainland China, the banking industry was the first to take the step of IT localization. However, due to the high confidentiality, intensity, and sensitivity of banking data, as well as the diversity and complexity of business, and the great impact on national operations, the localization of bank IT is a long road. The core issue of bank IT localization is to IOE (IOE, referring to IBM, Oracle and EMC, respectively, the three are the leading manufacturers of minicomputers, databases and high-end storage, and dominate the IT architecture of enterprises to a certain extent). In the first few years, it didn't go well. In recent years, with the country's increasing attention to this field and the gradual maturity of domestic related technologies, the localization of bank IT has gradually accelerated.
With the wave of IT localization, BI localization is an inevitable trend. At present, the BI industry as a whole is in a stage of rapid growth, and the combination of banking and BI is the trend, and the data security of the banking industry makes the localization of bank BI inevitable. It is necessary to improve the basic information construction and improve the concept of data governance, so as to better mine the value of data through BI and assist banks to better progress their business. This article will introduce the current situation of bank BI application and interpret the trend of bank BI localization.
1. Current status of bank BI applications
1. Distribution of bank customers for BI products
The BI coverage of banks in eastern cities is wider, and customers are more advanced in data governance concepts, with finer granularity of business analysis and higher demand for business intelligence analysis. For bank customers in the central and western regions, BI requirements focus on basic data governance, basic report construction, and preliminary business analysis. The main reasons for this regional BI requirement and capability division are as follows:
(1) Distribution of banking institutions.
The head offices of bank customers are mostly concentrated in eastern cities, and the density of business outlets is higher.
(2) Perfect infrastructure.
The banking business in the eastern region was launched earlier, and the IT infrastructure and technical architecture are more complete.
(3) Talent agglomeration effect.
More IT talents are flowing to the eastern region, and the head office and sub-branches have more sufficient reserves of scientific and technological personnel.
In general, banks in eastern cities are more advanced and complex in terms of BI needs, while banks in the central and western regions are more focused on the basic application of BI. This difference reflects regional differences in the distribution of banking institutions, IT infrastructure, and talent concentration.
2. Problems existing in bank BI applications
(1) The key basic information facilities of banks need to be consolidated
From the development process of banking technology, it can be seen that the autonomy of basic software and hardware of banks is not high, and the degree of dependence on foreign countries is large. In the stage of banking technology change, all business and data governance architecture of banks are based on basic information infrastructure, which is inevitable and requires long-term investment.
(2) The importance of data value mining needs to be improved
Although the data is only a few numbers, its intrinsic value needs to be explored. At present, many managers in the banking industry are still at the stage where data governance can be viewed, as long as it can meet the normal daily office. Ignoring the timeliness and value of data, BI not only stays at the level of data display, but also improves the timeliness of data acquisition and mining data value.
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3. The convenience brought by BI products to banks
The process of combining BI with banks can greatly improve the efficiency and security of banking services, reduce the risk and operating costs of financial institutions. At present, banks' BI needs are mainly concentrated in the following aspects:
(1) Report analysis automation
Bank staff from the management to the grassroots have a great demand for reports, such as: customer data filling, daily business inquiry, regular submission of reports to the regulator, etc. The following table is a G12 Loan Quality Migration Table, which is a complex but well-formatted report. Through report software, such as Finesoft FR, etc., the daily filling and production work can be reduced, which greatly improves the work efficiency of customers. Due to the complexity of the business and the high frequency of demand, the cost of report production is very large, so in order to reduce the cost of business personnel to make reports, reduce the cost of redundant data collection of scientific and technological personnel, and improve the value of data, report analysis automation can greatly meet the needs of customers.
(2) Real-time data monitoring
Due to the large volume of bank data and the high frequency of data updates, many problematic data are easy to ignore. The management and control of financial risks is an important part of the management of commercial banks, so real-time data monitoring can well assist banks in risk control.
(3) Refinement of business operations
Modern bank operation and management has long been transformed from rough operation to refined operation, such as asset and liability management, risk management and control, user analysis and other major business of the bank. The pain points, problems, and opportunities of operation need to be discovered through deep digging of data, so as to truly optimize daily operations and improve operational efficiency. When a problem is found in a risk indicator, you can click on the indicator to view the status of the secondary indicator, so as to further refine and analyze the problem points and expose the risk more accurately.
(4) Self-service demand analysis
The pain point of business analysis in the banking industry is that the technology department and the business department often have a poor coordination, and the business department needs to repeatedly ask the technology department to make reports, and the technology department spends a lot of time on data retrieval and maintenance databases, and cannot focus on improving digital value. The redundancy between the two departments has led to the gradual emergence of self-service business analytics as a customer requirement. The business department can realize the reports they want to build by supporting, pulling, and dragging, and the technology department reduces the ineffective data collection work, and finally achieves a win-win situation for the department.
(5) Office mobility
By integrating the functions of report query, data analysis, and fixed-point push on the PC side to the mobile side, it conforms to the current trend of light office. Mobile office truly enables the management to win thousands of miles away, and also realizes the demand of fingertip office for those who often need to travel.
2. Why is the localization of bank BI an inevitable trend?
Domestic BI technology has been relatively mature compared with foreign countries, in 2021 IDC released the business intelligence software market vendor share analysis, in 2021, the BI share of the Chinese market, domestic manufacturer Sailsoft ranked first with 19.1%, nearly 10% higher than the second place Microsoft. At present, there are three domestic manufacturers among the top 5 report analysis software market manufacturers in China, and the market share of domestic BI products is currently surpassing that of foreign products. This shows that domestic enterprises have a high degree of recognition for domestic BI manufacturers.
1. The benefits of BI localization for banks
Advantages of banks using domestic BI products:
(1) Improve data security
The data of the banking industry covers all aspects of the country's economic operation, and it is necessary to gradually get rid of the dependence on foreign software and hardware from the dimensions of database, data collection, data storage, and data services. BI localization will reduce external dependence from the back-end links, and at the same time promote the localization progress of the front-end upstream links, so as to gradually control the entire path of data flow in the hands of the state and banks themselves, and reduce the risk of data outflow.
(2) Build an industrial chain ecology
Although BI is in the middle and lower reaches of the industry chain, the limitations of upstream technologies have little impact on BI. However, the adaptation and compatibility of software and hardware in all aspects of the IT industry require long-term debugging and polishing, in order to avoid the chain reaction of the downstream links that are not suitable for the upstream links, the localization of BI will promote the overall ecological construction of the IT industry, which is an inevitable trend from a long-term perspective.
(3) It is more suitable for domestic bank customers
Since the domestic banking business is more oriented to domestic customers, both the banking business and the products and services it provides to customers have high Chinese characteristics. Therefore, domestic BI manufacturers have inherent local advantages in understanding the banking business and the behavioral characteristics of bank customers, and in addition, the communication and cooperation with local enterprises are smoother, so BI localization is more suitable for the domestic banking industry.
2. Domestic BI products can help banks in their digital transformation
(1) BI perfectly meets the needs of banks' digital transformation
As mentioned above, the needs of domestic bank customers for digital governance are as follows:
- Report analysis automation
- Real-time data monitoring
- Refined business operations
- Self-service business analytics
- Mobility of the office
The maturity of domestic BI technology has been able to meet the needs of customers. Taking the representative of domestic BI manufacturers as an example, the different products provided by Finesoft perfectly solve the above problems, FineReport provides customers with automated, complex report query, filling and other functions, FineBI solves the customer's self-service analysis and operation refinement needs, and the digital large screen is convenient for the customer's management to implement monitoring data.
(2) Industry precipitation + BI solutions to help banks improve their digital value
With the rapid development of BI in China, with the opening of the BI market, BI manufacturers have become more and more closely cooperating with customers, and gradually precipitating professional solutions in the industry. For example, after years of collaboration and cooperation with bank customers, Finesoft BI has sorted out and precipitated many bank value scenarios and solutions, such as inclusive financial business operation solutions, comprehensive risk monitoring solutions for financial customers, retail business digital operation solutions, etc.
Finesoft BI no longer stays at the stage of only providing customers with data display and data governance in the past, but gradually combines customer business to provide customers with closed-loop solutions from data governance, display, analysis to business problem solving, which greatly enhances the value of customer data.
(3) Build industry benchmarks and lead BI digital governance
Many customers in the banking industry actually have the heart of digital transformation, but they don't know how to integrate BI, and there are still many questions about the direction of BI+ banking. As mentioned above, BI localization + banking can be done in small steps, and with the maturity of BI technology, this road will become clearer and clearer.
Taking the domestic BI manufacturer Finesoft as an example, Finesoft has created many benchmark customers in all walks of life, the purpose of which is not only to make cases within the company, but also to hope that the digital governance scheme of benchmark customers can provide more enterprises and friends in the same industry with the idea of BI digital governance, and cause more exchanges and thinking in the industry, so as to promote the development of the BI industry and all walks of life, and provide more digital governance thinking value for the BI industry and other industries by taking points to areas.
3. Summary
In summary, domestic BI products can improve data security, build an industrial chain ecology, and are more suitable for domestic bank customers than foreign BI products, in addition to domestic BI products, domestic BI products can help banks in digital transformation. The localization of BI in the banking industry can promote the refinement of business analysis in the banking industry, and at the same time will strengthen the ecological construction of related industries, reduce the dependence on foreign software and hardware, and put the security of bank data in the hands of the state. Of course, the whole bank BI localization link cannot be achieved overnight, and the excessive pursuit of complete domestic substitution, safe, credible, usable, and practical domestic BI is the BI product needed for localization.