FINANCIAL SERVICES ANALYTICS
Prof K. Boudt
HANDELSWETENSCHAPPEN - MASTER FINANCE AND RISK
2021
, FSAN – Kris Boudt
PART 1:
TECHNIQUES
TO ANALYZE
DATA
1
,LECTURE 1 – INTRODUCTION TO THE COURSE
WHAT IS FSAN?
➢ Analytics:
Systematical analysis of data with the business objective of growing the business, improving decisions, optimizing
the costs or managing the risks.
➢ Financial services:
The sector which contains the following activities:
→ Banking (handling deposits and money lending)
→ Insurance (pay a premium to be protected against financial losses due to random events)
→ Payment services
→ Wealth & asset management (investment advisory)
→ Consultancy
WHY FSAN? DUE TO CHANGES!
➢ Changes in consumer behavior
→ More demanding in terms of user experience
→ Simple purchasing process
→ Quick response
→ Require personalization
→ Require low costs
→ Embrace digitalization
→ High trust in information technology (IT) firms
→ Interact with an increasing number of digital devices (PC, laptop, smartphone, tablet, smartwatch…)
→ Accept that user data is used for corporate purposes
→ Accept to interact with robots (chatbots, automated investment advice…)
➢ Changes in technology
→ More communications on digital devices
→ More data is stored and processed
→ More decisions can be data-driven (evidence based) & even automated
➢ Changes in profitability for banks
→ The profitability for banks is under pressure
→ ROE is declining year after year due to the overcapacity & the low margins
→ Solutions are mergers & digitalization
→ Aiming for state-of-the-art technology
→ Stay relevant (grow the business, what do consumers really want?)
→ Be efficient (reduce operating costs)
→ Success in digitalization (more revenues & less costs to create more profits)
2
, ➢ Changes in competition
→ While traditional banks operate in payments, lending, deposits… the new entrants in the market have
specialized themselves in one specific service (Apple Pay, Google Pay, Rabobank…)
Incumbent institutions Other finetech firms
KBC, BNP Paribas Fortis, Deutsche Bank... Armor, Transpay, Wirecard, Kickpay, C2FO...
INVESTORS CUSTOMERS
Technology providers & ICT companies
New digital-based institutions (incl. BigTech frims)
N26, Ion Bank, Hello Bank, Bunq... Amazon, Google, Apple, Facebook, Microsoft...
3
Prof K. Boudt
HANDELSWETENSCHAPPEN - MASTER FINANCE AND RISK
2021
, FSAN – Kris Boudt
PART 1:
TECHNIQUES
TO ANALYZE
DATA
1
,LECTURE 1 – INTRODUCTION TO THE COURSE
WHAT IS FSAN?
➢ Analytics:
Systematical analysis of data with the business objective of growing the business, improving decisions, optimizing
the costs or managing the risks.
➢ Financial services:
The sector which contains the following activities:
→ Banking (handling deposits and money lending)
→ Insurance (pay a premium to be protected against financial losses due to random events)
→ Payment services
→ Wealth & asset management (investment advisory)
→ Consultancy
WHY FSAN? DUE TO CHANGES!
➢ Changes in consumer behavior
→ More demanding in terms of user experience
→ Simple purchasing process
→ Quick response
→ Require personalization
→ Require low costs
→ Embrace digitalization
→ High trust in information technology (IT) firms
→ Interact with an increasing number of digital devices (PC, laptop, smartphone, tablet, smartwatch…)
→ Accept that user data is used for corporate purposes
→ Accept to interact with robots (chatbots, automated investment advice…)
➢ Changes in technology
→ More communications on digital devices
→ More data is stored and processed
→ More decisions can be data-driven (evidence based) & even automated
➢ Changes in profitability for banks
→ The profitability for banks is under pressure
→ ROE is declining year after year due to the overcapacity & the low margins
→ Solutions are mergers & digitalization
→ Aiming for state-of-the-art technology
→ Stay relevant (grow the business, what do consumers really want?)
→ Be efficient (reduce operating costs)
→ Success in digitalization (more revenues & less costs to create more profits)
2
, ➢ Changes in competition
→ While traditional banks operate in payments, lending, deposits… the new entrants in the market have
specialized themselves in one specific service (Apple Pay, Google Pay, Rabobank…)
Incumbent institutions Other finetech firms
KBC, BNP Paribas Fortis, Deutsche Bank... Armor, Transpay, Wirecard, Kickpay, C2FO...
INVESTORS CUSTOMERS
Technology providers & ICT companies
New digital-based institutions (incl. BigTech frims)
N26, Ion Bank, Hello Bank, Bunq... Amazon, Google, Apple, Facebook, Microsoft...
3
