Q:

Question: I want to start a bank project on a data warehouse. How do I go about it?

A:

Sid Adelman’s Answer: You first need to determine the requirements for your project. You will need a high-level business sponsor who needs data warehousing capabilities for his or her division. You will want to review what other banks are doing and then establish a set of goals and objectives for your project. You may also need to cost justify your project to be able to get the budget you need. There are quite a few great data warehouse applications in the banking industry. Here are a few:

General Banking

  • Evaluating business concentration and risk exposure leading to modified credit policies and loan loss reserves
  • Spot market trends
  • Government regulation reporting
  • Marketing
  • Mergers
    • Geographic overlap and saturation
    • Information for government regulation and approval
  • Support management planning, marketing and financial decision making
  • Ability to track and cut costs
  • Provide feedback to bankers regarding customer relationships and profitability

Credit Cards

  • Identify new customers
  • Manage and control collections
  • Develop new products
  • Determine optimal marketing efforts for new products
  • Manage customer service performance
  • Identify potential risk of default
  • Model products
  • Predict future cardholder performance
  • What-if scenarios for customer acceptance

Home Mortgage

  • Predict performance of loan portfolio
  • Predict performance of individual loans
  • Understand new loans in process (pipeline)
  • Support secondary marketing

Doug Hackney’s Answer: Hire experienced people and consultant who have experience in banking data warehouse systems.

Scott Howard’s Answer: That is a very broad question. I suggest some training in which you role play, gathering user requirements and using those requirements to produce a requirements model and document from which you model and construct a DW. There are several good books that can also help, but nothing replaces the experience gained in such a class. Contact me at scottho@us.ibm.com, I can make some specific recommendations.

Chuck Kelley’s Answer: Find customers in the bank who need a data warehousing environment and gather the requirements for building them one.  Then follow a methodology for building the data warehouse so that this one would be successful.

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