IDC Financial Insights recently released a report, “Best Practices: IDC Maturity Model Benchmark—Big Data and Analytics in Financial Services,” to help financial institutions assess their level of maturity in big data and analytics (BDA) against market and industry benchmarks. The report shows that a majority of financial firms (67 percent) present a "repeatable" level of BDA maturity overall, the third level of IDC Financial Insights' five-level BDA maturity model.
Some 12 percent of financial services firms fall one maturity level below and another 21 percent are one maturity level above the majority.
Those institutions that are investing in their BDA competencies report a positive correlation between BDA maturity and the successful outcomes of BDA initiatives, IDC says. On average, higher levels of BDA maturity has led to better chances of generating value and achieving expected or greater-than-expected benefits.
Institutions can use the IDC baseline to define short- and long-term goals and plan for improvement; prioritize BDA technology, staffing and other related investment decisions; and uncover “maturity gaps.”
"In-market adoption of big data and analytics has reached the point where the capabilities and applications these technologies enable are becoming mainstream for a growing number of financial services firms,” Michael Versace, research director at IDC Financial Insights, said in a statement. “Yet many do not yet have a set of completely mature BDA competencies across the five critical dimensions that are necessary to effectively reduce execution risks and compete with strong business, technology and operational value propositions.”
The report presents benchmark data on the maturity of BDA capabilities of North American commercial, retail and investment banks; identifies the key capabilities that distinguish institutions whose BDA efforts have met or exceeded their overall expectations from their competitors whose BDA efforts have fallen short; and offers guidance for achieving BDA success.