Information-Driven

Financial Services
Capture Value from Big Data with an Enterprise Data Hub
Big Data Is Only Getting Bigger
Particularly Relevant in the Financial Services Space

COMPETITION & MARKETING

END-USER
APPLICATIONS
ON-DEMAND REPORTING
THEMANAGEMENT
& RISK INTERNET
MOBILE DEVICES
INVESTMENT VARIETY
Data Growth

SOPHISTICATED
CONSUMER CREDIT EXPLOSION
MACHINES

COMPLEX DATA – 90%

STRUCTURED DATA – 10%

1980 TODAY
© Cloudera, Inc. All rights reserved. 2
Where Is the Financial Services Data?
Mapping and Consolidation Are the Tip of the Iceberg for Big Data

Credit Cards & Investment

Retail Banking Insurance Services & SROs
Payments Banking

• Bank Transactions • Card Transactions • Trade Data • Claims / Policy Data • Trade Data
• Customer Data • Customer Data • Customer Data • Customer Data • Communications /
• ATM Activity • Online Activity • Web Logs • Demographic / Census Documentation
• Online Activity • Demographic / Census • Research / Publications Data • Market Data
• Mobile Activity Data • Market Data • Weather Data • Research / Publications
• Demographic / Census • Marketing / CRM • Communications / • Vehicle Telemetry • Surveys
Data • Integration with Retailers Documentation • Video / Surveillance
• Marketing / CRM / Loyalty • Sensors
• Social / Sentiment • Social / Sentiment • Internet of Things

© Cloudera, Inc. All rights reserved. 3

 Three Factors Entrenching Big Data in Financial Services
1. Compliance and Strategy: Growth in a Stringent Regulatory Environment
Accenture and CEB TowerGroup say…

64% believe Dodd-Frank will strengthen

their competitive positioning

83% agree Dodd-Frank will benefit their

own company’s customers

50% anticipate spending $50 million or

more on compliance

Sources: Dash, Eric. “Feasting on Paperwork,” The New York Times. September 8, 2011.
Accenture. Coming to Terms with Dodd-Frank. January 2013.

© Cloudera, Inc. All rights reserved. 4

 Three Factors Entrenching Big Data in Financial Services
2. Mass Personalization: Tailoring Products and Services Across the Value Chain
Deloitte and Core Profit say…

Average customer
acquisition costs retail banks
MORE THAN $350
and requires customers to
carry balances
NEARING $10,000
just to break even

Sources: Deloitte. 2014 Banking Industry Outlook. February 2014.

Andera & CoreProfit. The Future of Account Opening 2011. June 2011.

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 Three Factors Entrenching Big Data in Financial Services
3. Towards Competitive Advantage: Consolidation Around High-Return Opportunities
Morgan Stanley Research and Oliver Wyman say…

During the past 20 years, the

margins on deposits and cash
equities have
DECLINED BY 33% TO 50%
while the need for computing
power in FinServ has
GROWN 200% TO 500%
FASTER THAN REVENUE
Sources: Morgan Stanley Research & Oliver Wyman. Wholesale and Investment Banking Outlook 2014. March 2014.
Oliver Wyman. The State of the Financial Services Industry 2013. January 2013.

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Traditional Architectures Under Pressure
Huge Investment in Specialized Systems that Treat Data as a Commodity
Limited Insights
Power users struggle with data. Data Business Operational Custom
Many users have no data. Access Analytics Applications Applications

Databases
Compliance and Privacy
More data, more users, and Data
more tools create complexity.
Systems
Need to balance business agility
with security and governance.

Limited Data
Not efficient to keep existing data,
let alone handle new data sources. Data Existing
New Data
Time consuming to transform data Sources Data
for analysis in existing systems.

© Cloudera, Inc. All rights reserved. 7

Cloudera Enterprise: Powered by Apache Hadoop
An Open-Source Data Engine at the Core and Built for the Modern Enterprise

A new kind of data platform.

Process Discover Model Serve • One place for unlimited data
• Unified, multi-framework data access
Security and Administration
Only with Cloudera:
Unlimited Storage • Leading performance
• Enterprise system and data management
Deployment On-Premises Public Cloud • Fundamentally secure
Appliances Private Cloud
Flexibility Engineered Systems Hybrid Cloud
• Open source, open standards

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More Value from More Data for More Users in Less Time
Maximize Benefit from All Your Data for Mission-Critical Jobs and Innovation
Unlock Value from Data
From analytics for some, Data Business Operational Custom
Access Analytics Applications Applications
to insights for all.

Databases Enterprise Data Hub

Manage Compliance
Process Discover Model Serve
From risk due to regulations and Data
customer privacy concerns,
Systems Security and Administration
to trust in a secure and
compliant platform. Unlimited Storage

Keep Unlimited Data

From disparate and limited views,
Data Existing
New Data
to unlimited information access. Sources Data

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One Platform, Many Workloads
Advance from Strategy to ROI with Best Practices and Peak Performance

Batch, Interactive,
Process Discover Model Serve
and Real-Time.
Ingest Analytic Database Machine Learning NoSQL Database
Sqoop, Flume Impala SAS, R, Spark, HBase Leading performance and
Transform Search
Mahout
Streaming
usability in one platform.
MapReduce, Solr Spark Streaming
Hive, Pig, Spark • End-to-end analytic workflows
YARN, Cloudera Manager,
• Access more data
Security and Administration Cloudera Navigator • Work with data in new ways
Unlimited Storage HDFS, HBase • Enable new users

© Cloudera, Inc. All rights reserved. 10

The Most Complete Ecosystem
Enablement for a Complete Big Data Solution

Applications More than 1,300 partners

ensure compatibility with existing
investments, lower skill barriers, and
Operational help maximize value from your data.
Tools

Enterprise Data Hub

System Integration
Process Discover Model Serve
Data
Systems Security and Administration

Unlimited Storage

Infrastructure

© Cloudera, Inc. All rights reserved. 11

The Journey to a Data Strategy
Operational Efficiency Buys Option on Exploration, Data Science, and Convergence

Operational Efficiency New Business Value

Optimize your architecture. Discover the value in your data. Empower users directly.
IT analysts and data scientists everyone

Process Discover Model Serve

Security and Administration

Unlimited Storage

© Cloudera, Inc. All rights reserved. 12

Balance Security and Privacy with Business Agility
Table Stakes for Any Big Data Strategy or Solution

1. Perimeter Standards-based Authentication Cloudera is the leader in

Hadoop security.
Process Discover Model Serve
2. Access Unified Role-based Authorization Unique Capabilities:
• Comprehensive and Unified
Security and Administration • Secure at the core
3. Visibility Auditing & Governance • No Performance Impact
Unlimited Storage • Jointly engineered with Intel

4. Data Encryption & Key Management • Compliance-Ready

• Only distribution to pass PCI audit

© Cloudera, Inc. All rights reserved. 13

Enterprise-Grade Security
Governing Access to and Management of All Data-at-Rest and Data-in-Motion

Table Stakes for Big Data and

AUTHENTICATION AUTHORIZATION
Native to Cloudera Enterprise
Guarding access to the Controlling who or
• Cloudera Manager and Navigator system, its data, and its what has access to a
various systems resource or service
automate protections for Hadoop
LDAP POSIX Permissions
and related projects Kerberos RPC Apache Sentry

• Perimeter security
• Role-based access control
• The only complete policy-based
management of sensitive data
• Data lineage and discoverability
PROTECTION AUDIT
Encryption for data at Capture a complete
rest or in motion with and immutable record
full key management of all activity
Cloudera Navigator: Cloudera Navigator
Encrypt & Key Trustee SIEM Tools

© Cloudera, Inc. All rights reserved. 14

Full Regulatory Compliance
Centralized Management of and Reporting on All Your Data in Full Fidelity

Full risk, fraud, retention, and

MARKET RISK TRADE REPORTING
transaction security compliance
Basel III: liquid capital OATS: reporting on all
enabled by an enterprise data hub coverage for changing orders, quotes, trades
stress, volatility, rates
• Consolidate ETL, linkage, analysis,
reporting, storage Apache Spark MapReduce, Spark,
Impala HBase, Impala
• Offset high opportunity cost of
specialized systems
• Centralize and increase utilization
of requisite data E-RECORDS DATA SECURITY
WORM: retention of PCI DSS: ensure credit
• Improve speed and reduce pain of all records without cardholder privacy and
compliance reporting deletion or alteration transaction security
Apache HBase Cloudera Navigator:
Cloudera Search Encrypt & Key Trustee

© Cloudera, Inc. All rights reserved. 15

Enterprise-Grade Security, Full Regulatory Compliance
Meeting PCI DSS Requirements with Cloudera Enterprise

Apache Cloudera Cloudera Cloudera

PCI Requirement Detail Kerberos Customer
Sentry Navigator Manager CSE
Build and Maintain a Secure Install and maintain a firewall configuration to protect cardholder data ✔
Network and Systems
Do not use vendor-supplied defaults for system passwords and other
✔
security parameters
Protect Cardholder Data Protect stored cardholder data ✔

Encrypt transmission of cardholder data across open, public networks ✔

Maintain a Vulnerability Protect all systems against malware and regularly update anti-virus
✔
Management Program software of programs
Develop and maintain secure systems and applications ✔

Implement Strong Access Restrict Access to cardholder data by business need to know ✔
Control Measures
Identify and authenticate access to system components ✔

Restrict physical access to cardholder data ✔

Regularly Monitor and Test Track and monitor all access to network resources and cardholder data ✔
Networks
Regularly test security systems and processes ✔

Maintain an Information Maintain a policy that addresses information security for all personnel
✔
Security Policy

© Cloudera, Inc. All rights reserved. 16

 Retail
Banking

Investment 4 of the
Banking top 5

Credit &
Payments

Insurance

Services
& SROs

© Cloudera, Inc. All rights reserved. 17

 Retail
Banking

Next Best Offer

Use Case Better profile the customer and use collaborative and content-based filtering to offer the
most appropriate product or bundle of products at any given time.

Too Many Sources

Problem Disparate data is hard to correlate and analyze for sufficiently personalized product
bundling, cross-sell, and up-sell opportunities served in real time.

Recommendation Engine
Solution Centralize data from silos: transactions, clickstreams, service logs, social, etc. Find data
using Search and build models with Pig, Mahout, Spark, analytics tools.

Partners

© Cloudera, Inc. All rights reserved. 18

Investment
Banking

Risk Modeling
Use Case Report on risk on an on-demand basis and stress-test against scenarios that would require
payout of potentially catastrophic losses with liquid capital.

Many Rigid Systems

Problem Complex grid architecture is expensive, inflexible, error-prone, and hard to test. It does not
scale well for real-time trading or intra-day stress-testing models.

Calculate Anything
Solution HBase provides a real-time tick store also accommodating massive historical data. Spark
and Impala converge ETL, analytics, and reporting for intra-day modeling.

Partners

© Cloudera, Inc. All rights reserved. 19

 Credit &
Payments

Fraud Prevention
Use Case Text mining and machine learning model rare events and combine data from suspicious
transactions with extracts from other sources to confirm and target.

Reactive, Not Predictive

Problem Anomaly detection models are severely hampered by data limitations and extreme cost for
traditional ETL and data warehousing processes.

Machine Learning
Solution Impala offsets the latency and constraints of EDWs to expand the data available for SIEM by
decades, also driving down the cost of ad hoc real-time modeling.

Partners

© Cloudera, Inc. All rights reserved. 20

Insurance

Policy Personalization
Use Case Differentiate coverage options by customizing plans based on information collected about
customers’ lifestyle, health patterns, habits, and preferences.

Can’t Scale for Sensor Data

Problem Current systems can not integrate telemetric and sensor data delivered in real time with
historical data to tailor policies and incentive plans to the user.

Stream Processing
Solution Spark Streaming is used to calculate pricing occasions in real time based on live,
unstructured data-in-motion from sensors, mobile devices, onboard computers, etc.

Partners

© Cloudera, Inc. All rights reserved. 21

Services &
SROs

Operational Data Store

Use Case OATS regulation requires electronic auditing and reporting capabilities on all stock and
equity orders, quotes, trades, and cancelations for greater scrutiny.

Moving Data to Compute

Problem Expanding reporting requirements—for both financial services firms and SROs—are
overwhelming systems built on traditional enterprise data warehouses.

Active Archive
Solution Impala provides in-cluster reporting and investigation capabilities to keep data centrally
accessible for multi uses. Hadoop will scale to oncoming CAT reporting.

Partners

© Cloudera, Inc. All rights reserved. 22

 How much can we cut our storage footprint and costs if we
increase governance of active data rather than archive?

What can we learn from using much larger and more varied
data sets for advanced security and threat analytics?

Curtail $30 million fraud case – largest in company history.

Create $1 billion data product offering – not previously possible.

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 Can we accommodate the massive increases in volume, variety,
and velocity of market data while keeping down costs?

What insights can we derive about market and institutional

behaviors to proactively detect threats and ensure transparency?

Reduce order lifecycle queries from 90 minutes to 10 seconds.

Scale to support any regulatory change and save $20 million a year.

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 How do we use standard profile information for each
house to determine risk and set individualized rates?

Can we capture more detailed data streams to personalize

policies to actual day-to-day occurrences at each property?

Scale to run models across data from all 50 states simultaneously.

Experience an average 7500% speed-up on descriptive analytics.

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 Can we eliminate sampling error by
including all our log data in analyses?

What opportunities are we not seeing? Can we identify and

investigate anonymous patterns or trends in real time?

Identify and isolate high-value patterns without pre-assignment.

Build real-time recommender systems to optimize buy/sell.

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Thank you

© Cloudera, Inc. All rights reserved. 27