Case study:Using Big Data & Advanced Analytics to Drive New Revenue Streams
The concept and vision
Finding new revenue streams through big data & analytics
Perpetual is the leading corporate trustee of Australia’s securitisation market. A core role Perpetual has performed for over 15 years is the data warehouse (FinTech) for reporting to investors and intermediaries. The data warehouse role increased materially in 2015 to include regulatory reporting through to the Reserve Bank of Australia (RegTech) for banking and financial services institutions, which has led to data accumulation of more than 15 years on $310 billion of Australian mortgages a month, comprising of over 180 million loan records from 54 lenders.
The vision was to create a new ecosystem to collaborate and support their clients’ business strategy, regulatory and financial reporting obligations, while promoting a transparent and comparable securitisation market. One step on this journey was to develop analytics and predictive credit risk modelling on this immense amount of data which required building the technological capabilities that could handle and process Big Data and run Advanced Analytics.
Perpetual embarked on a digital transformation initiative and sought for a technology partner to implement the data platform and data warehouse.
A self service to stress-test mortgage portfolios against 15 years of Australian loan data
“What Ignia [an Insight Company] did to really explore and open our minds to what was available in the digital world during that project was awesome. They really opened our understanding of what the Microsoft platform was, what it can actually do, in terms of digitally transforming data into the cloud and utilising the Cortana and Power BI platforms to really develop products which we could then move into new markets, new clients but also provide even greater value to our existing clients”, says Richard McCarthy, General Manager Sales & Product, Perpetual.
Insight was appointed to architect and implement the ABSPerpetual Business Intelligence platform and data warehouse.
The solution of a cloud-based analytics platform built entirely on Microsoft Azure and Cortana Intelligence Suite products, provided Perpetual with the performance and scalability to process the large data sets and critically gave Perpetual the confidence in privacy and security needed in a regulated financial services environment.
Furthermore, the Cortana Intelligence suite provided the predictive analytics capability to power Perpetual’s credit model, whilst Azure Analytics services and Power BI provided the reporting and visualisation capabilities for Perpetual to surface the platform into self-service analytics and reporting offerings for their end customers to easily consume and understand the data.
Another great outcome
A unique capability disrupting the industry
Today, Perpetual is providing a portfolio of service offerings through the ABSPerpetual Business Intelligence platform, that intends to dramatically strip out the lending industry’s cost associated with traditional methods of running data warehouses and bespoke business analytics projects.
With the scalability of the platform, Perpetual has a goal of ingesting $1.7 trillion worth of mortgage data into ABSPerpetual in the future.
It has opened doors for Perpetual to generate new revenue streams in the lending as well as housing market, unheard of for a corporate trustee of the securisation market. The size of Perpetual’s data store and cloud pay-as-you-go software services is allowing banks and financial institutions to perform their own self-service risk analysis, at a fraction of the cost.
Richard McCarthy continues, “Without Ignia [an Insight Company], as a key business partner, to provide us that innovation, and that leading edge thinking of new digital technologies, we wouldn’t be where we are today.”