Claims:We claim:
1) The system and method for risk management in banking sector by using big data technology is comprising of the contents such as;
a. Any computing device with high definition;
b. Any open-source framework like Hadoop for data analysis which stored data on big data; and
c. The web application for risk management in banking sector
2) The system claimed in claim 1 wherein, banks can analyse the market trends and decide on lowering or increasing interest rates for different individuals across various regions.
3) The system claimed in claim 1 wherein, data entry errors from manual forms can be reduced to minimum as big data point out anomalies in customer data too.
4) The system claimed in claim 1 wherein, fraud detection can be done easily.
5) The system claimed in claim 1 wherein, can prevent fraudulent or dubious transactions that could promote anti-social activities or terrorism.
, Description:FIELD OF THE INVENTION
The present invention discloses the system and method for efficient risk management in banking sector by using big data technology. The invention is related to banking sector, which are now well developed due to upcoming technologies. Big data is one of the best technologies which can be effectively used for risk management in banking sector.
BACKGROUND OF THE INVENTION
Risk management in banking is theoretically defined as the logical development and execution of a plan to deal with potential losses. Usually, the focus of the risk management practices in the banking industry is to manage an institution’s exposure to losses or risk and to protect the value of its assets.
Risk management implies significant limits on the ability of highly leveraged financial institutions such as banks to provide badly needed venture capital; it implies that financial systems need more than banks.
Essentially, the goal of risk management is to identify potential problems before they occur and have a plan for addressing them. Risk management looks at internal and external risks that could negatively impact on organization.
In particular, banks need to adopt risk measurement and risk management procedures and processes in order to guarantee their risk-adjusted return in their business. Therefore, the core concept of banking risk management is to ensure the profitability and the safety of the banking industry.
The present invention gives the help or method for risk management in banking sector.
The present invention discloses the system and method for risk management in banking sector by using big data technology. With the help of big data analytics, banks can analyse the market trends and decide on lowering or increasing interest rates for different individuals across various regions. Data entry errors from manual forms can be reduced to minimum as big data point out anomalies in customer data too. With fraud detection algorithms, customers who have poor credit scores can be identified so that banks don’t loan money to them. Yet another big application in banking is limiting the incidences of fraudulent or dubious transactions that could promote anti-social activities or terrorism.
OBJECT OF THE INVENTION
The main object of the invention is, system and method for risk management in banking sector by using big data technology.
Another object of the invention is, with the help of big data analytics, banks can analyse the market trends and decide on lowering or increasing interest rates for different individuals across various regions.
Another object of the invention is, data entry errors from manual forms can be reduced to minimum as big data point out anomalies in customer data too.
Other object of the invention is, with fraud detection algorithms, customers who have poor credit scores can be identified so that banks don’t loan money to them. Yet another big application in banking is limiting the incidences of fraudulent or dubious transactions that could promote anti-social activities or terrorism.
SUMMARY OF THE INVENTION
The present invention discloses system and method for risk management in banking sector industry by using big data technology. Big data analytics analyses data and provide that data to banks. Banks can analyse the market trends and decide on lowering or increasing interest rates for different individuals across various regions. Data entry errors from manual forms can be reduced to minimum as big data point out anomalies in customer data too. With fraud detection algorithms, customers who have poor credit scores can be identified so that banks don’t loan money to them. Yet another aspect is limiting the incidences of fraudulent or dubious transactions that could promote anti-social activities or terrorism.
BRIEF DESCRIPTION OF THE DRAWINGS
Fig 1 shows flowchart of the method and computer program for this invention.
DETAILED DESCRIPTION OF THE INVENTION
The present invention discloses the system and method for risk management in banking sector by using big data technology.
Big data is the vast volume of structured or unstructured data that is readily available at our collective fingertips. These large data sets are analysed to reveal previously unknown patterns and provide insights into businesses, human behaviour, and more. Big data analysis is used for everything from financial services, to gauging someone’s productivity, to even monitoring the weather.
The key feature of big data is to analyse, understand and interpret it in order to give user a full picture as possible about the risk management in banking sector.
The system and method for risk management in banking sector by using big data technology is comprising of the contents such as;
Any computing device with high definition
The web application of risk management in banking sector
Any open-source framework like Hadoop for data analysis which stored data on big data
Big data consists of five stages such as-
Data sources- web and social media, machines, Sensing, IoT
Content format – structured, semi-structured, unstructured data
Data stores – document oriented, column oriented, graph database, key value
Data Staging – cleaning, transform and normalization
Data processing – Batch and real time
The system and method for risk management in banking sector by using big data technology is comprising of the steps are as;
Step 1) The web application of risk management in banking sector is created
Step 2) Banking team member open the invention application
Step 3) With the help of big data analytics, banks can analyse the market trends and decide on lowering or increasing interest rates for different individuals across various regions
Step 4) Big data point out anomalies in customer data resulting data entry errors from manual forms can be reduced to minimum
Step 5) Big data helps banking sector in limiting the incidences of fraudulent or dubious transactions that could promote anti-social activities or terrorism
Role of Big data in invention application is as:
With the help of big data analytics, banks can analyse the market trends and decide on lowering or increasing interest rates for different individuals across various regions.
Another aspect of invention application is that, data entry errors from manual forms can be reduced to a minimum as big data point out anomalies in customer data too.
Other aspect of invention application is fraud detection algorithms. With this fraud detection algorithms, customers who have poor credit scores can be identified so that banks don’t loan money to them. Yet another big application in banking is limiting the incidences of fraudulent or dubious transactions that could promote anti-social activities or terrorism.
Advantages of application-
Efficient risk management that helps detect errors and frauds in real-time.
Analyse consumer behaviour and provide personalized banking solutions.
Regulatory compliances are easier to file using big data.
Performance analytics using big data help in budgeting and innovation.