Unlocking the Power of Data for a Better Future – Insights From Singapore Fintech Festival 2018
James Coffey, Head of Channels and Alliances, South East Asia, and Gaurav Kumar, Head of Data Labs, Asia Pacific speaking on “Embedded Machine Learning in the New Age Products” at the Singapore Fintech Festival 2018
A staggering 2.5 quintillion bytes of data is produced each day. Today, some ninety percent of the world’s data is thought to have been generated in just the last two years. Whether online or offline, rural or urban, our digital-first world has given rise to a vast number of touchpoints - each yielding large amounts of data which form the backbone for strategic decision making for organisations.
However, as the world digitalises, how can these companies boost their ability to process even more amounts of data, and what are some of the use cases of big data beyond consumer insights?
These were among the topics addressed by Experian’s James Coffey, Head of Channels and Alliances, South East Asia, and Gaurav Kumar, Head of Data Labs, Asia Pacific at the 2018 Singapore Fintech Festival, the world’s largest fintech event.
Speaking to a packed room, James and Gaurav shared insights on how emerging technologies such as Machine Learning and Artificial Intelligence could help organisations boost their data analysis capabilities. The session also covered details on how data-driven solutions created at Experian are making a difference in the lives of consumers in Asia Pacific.
Innovative Answers for Complex Problems
The sheer amount of data modern organisations face each day can be challenging. This is an obstacle that Experian’s DataLabs, a research facility with offices all around the world, is working tirelessly to overcome with technology. The DataLabs aids in the creation of innovative solutions characterised by a unique blend of best in class data, advanced analytics and digital decision strategies, allowing for more effective management of big data scenarios.
Experian also collaborates with start-ups, lending its technology and resources to enable complementary firms to scale more efficiently or deliver better services. Aside from these partnerships, Experian is formulating a Venture Program focused on growth stage minority investment opportunities and a ‘service for equity’ program designed to give start-ups access to Experian services in exchange for equity.
Machine Learning – Why it Matters for Big Data
While it might be daunting to think that Machine Learning provides computers with the ability to learn without being explicitly programmed to do so, when implemented correctly, the automation enabled by Machine Learning is a highly effective tool that vastly enhances the capability of human teams to process massive amounts of data. At Experian, we believe in the potential to harness this technology to make a positive difference in the lives of billions of consumers across Asia Pacific.
Data processing models augmented with Machine Learning capabilities have proven to have strong predictive power, being able to process non-standard data sources for more optimal results.
Use cases benefitting from this include fraud detection, delivery of personalised and targeted product recommendations, and risk score analysis on a national and regional scale. On average, Machine Learning has delivered 20 per cent more accuracy in preventing fraud for Experian. In addition, the combination of different models that Experian deploys has reduced false positives significantly: 80 per cent of valid transactions that traditional models reject as fraud, are successfully passed, increasing customer satisfaction and business outcomes.
In the near term, Experian foresees a growing adoption of Machine Learning augmented data processing models in the near term as organisations deal with an increasingly large number of data-sets and digital touchpoints that necessitate more efficient ways of processing data rapidly.
Empowering Consumers with Data Driven Financial Access
Experian has long recognised the transformational potential of data, harnessing its power to create opportunities, improve lives, and make a difference to society. A key focus for Experian revolves around the use of data to drive financial inclusion in regions such as Southeast Asia, where only 48 per cent of more than 600 million people have access to traditional banking services.
Experian’s approach to enhancing financial accessibility is centred around the use of non-traditional data for credit scoring, empowering organisations to determine the credit worthiness of individuals in regions where bureau data is limited or unavailable. For instance, telecommunication network providers often represent great sources of alternative data. User behaviour such as calling patterns and app usage may all be utilised to build a credit profile of an individual, which may then be used as a reference for financial institutions.
Experian has recently inked partnerships with the likes of C88 Financial Technologies and BankBazaar. Both collaborations are envisioned to extend financial accessibility to millions of consumers across Indonesia, Philippines, and India. Moving ahead, the next step for Experian is to work with banks to overhaul client processing, speeding up the process through the use of alternative data.
Experian’s Venture and ‘service for equity’ programs are due to be introduced at a later date. In the meantime, start-ups keen on working with Experian can contact us here.
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