DATA4000 Introduction to Business Analytics Report 3
Your Task
Consider below information regarding the National Australia Bank data breach.
Read the case study carefully and using the resources listed, together with your own research, complete:
Part A (Industry Report)
Part A: Industry Report (1800 words, 25 marks) - Individual Based on your own independent research, you are required to evaluate the implications of the European legislation such as GDPR on HSBC’s proposed analytics project and overall business model.
Your report can be structured using the following headings:
Data Usability
- Benefits and costs of the database to its stakeholders.
- Descriptive, predictive and prescriptive applications of the data available and the data analytics software tools this would require.
Data Security and privacy
- Data security, privacy and accuracy issues associated with the use of the database in the way proposed in the brief.
Ethical Considerations
- The ethical considerations behind whether the customer has the option to opt in or opt out of having their data used and stored in the way proposed by the analytics brief
- Other ethical issues of gathering, maintaining and using the data in the way proposed above.
Artificial Intelligence
? How developments in AI intersects with data security, privacy and ethics,
especially in light of your proposed analytics project.
It is a requirement to support each of the key points you make with references (both academic and “grey” material) Use the resources provided as well as your own research to assist with data collection and data privacy discussions.
Solution
Introduction
Customer data can be used to assist HSBC in its campaigns of marketing. The study has considered the data usability by analysis of data software. The study has examined HSBC's challenges of data security and privacy. University Assignment Help, There has been an additional consideration of ethics and artificial intelligence in formulating secure analytics projects.
Data Usability
Benefits and costs of the database to its stakeholders
Maintenance of proper contact details and engagement history is required to manage stakeholders. This implies that HSBC has to develop an effective database of CRM (Management of customer relationships). The major benefits of maintaining the database of stakeholders are that it responds to urgent inquiries (Shcherbachenko et al., 2022, p. 6). Databases can announce significant initiatives for HSBC stakeholders that can enhance the bank's reputation among its stakeholders. There can be prompt responses to feedback and surveys with the participation of suitable candidates. It can improve the accuracy regarding details of contact for HSBC customers, thereby minimising efforts in emails bounced. There are potential benefits to the stakeholders when vendors of HSBC know the history of customer use of credit cards. This can bring about a reduction in interest on loans and give customers monetary benefits after retirement. However, there are disadvantages of databases to the stakeholders of HSBC. It can be possible that the crucial stakeholders do not get adequate information and notifications (Gupta et al., 2020, p. 10). The staff of HSBC remains unaware of the current challenges and issues of HSBC, damaging the bank's reputation. The database can overlook important stakeholders and key information required to formulate HSBC marketing strategies. Nevertheless, reliable intelligence of stakeholders, accurate details of stakeholders and organised groups of stakeholders can help HSBC in the execution of an effective engagement plan.
Descriptive, predictive and prescriptive applications of the data available
Descriptive analysis helps in the examination of the incident of hacking that happened in the HSBC bank. The descriptive analysis for HSBC has to adopt methods of data mining and data aggregation. The data aggregation will enable HSBC Bank to gather and organise information for the creation of manageable sets of data. These sets of data are applied in the process of data mining for the identification of trends and patterns in the prevalent banking sector. This will enable HSBC Bank to establish its position after the hacking incident for drawing effective customers. Predictive analysis is useful for gathering historical data and using the same for determining future predictions (Pedrini and Ferri 2019, p.48). Predictive analytics can be applied to HSBC banks by a combination of a variety of techniques. The suitable techniques are data mining, algorithms of machine learning and statistical modelling (Cosmulese et al., 2019, p.6). The predictive analysis can ensure that HSBC can use these techniques to mitigate future hacking. The importance of prescriptive analysis for HSBC lies in providing effective insights for making data-based decisions that can optimise business performance. The prescriptive analysis needs to be developed by HSBC to integrate its monitoring service, Identity Guard. This will lead to preserving data for the present and potential customers. Identity Guard can be kept as a component of the marketing campaign of HSBC that will consolidate its competitive position in the banking industry.
Data analytics software tools
The enhancement of IoT adoption and the rise of Big Data has enabled banks such as HSBC to reconsider their present strategies. The major tools of data analytics that HSBC can use are SQL server, Informatica, Oracle and TERADATA. The adoption of data analytics and tools software enables mitigation of the issue of hacking and can bring about a reduction in operational costs (Frazzetto et al., 2019, p.576). The tools help create a competitive advantage for HSBC against other UK banks such as Barclays, HDFC and Axis Bank. For instance, the SQL server tool can be precisely used by HSBC for storing crucial information in databases without undergoing any complications.
Data Security and Privacy
Data security
Data security implies the measures of protection that have been employed for data securing against access that are unapproved. This is required to preserve the confidentiality of data, its availability and integrity (Lepenioti et al., 2020, p. 59). HSBC has survived a recent attack from a cyber hacker that has stolen its data. The data comprise both professional and personal information of the customers. This has resulted in HSBC sending correspondence to undisclosed customers. Exploiting vulnerabilities present in the HSBC database causes major data security challenges. Open-source platforms and security patch issues cause these vulnerabilities. There can be challenges due to attacks that use arbitrary SQL and non-SQL.
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Figure 1: Components of Data Security
Source: (Shaji, 2020)
It can be stated from the above figure the major components of data security that need to be considered to mitigate issues faced in the banking sector. The attacks are caused when the above components are not given due consideration. Furthermore, the attacks on data security happen when the IT team of HSBC Bank is ineffective in securing the coding practice. There are issues in data security for HSBC related to attacks of butter overflow. This happens when the recording process of banking writes extensive data on the fixed memory (Wang et al., 2020, pp. 813-820). The hackers can steal the excess information that has been kept in the adjacent addresses of memory. The proposed monitoring services of Identity Guard can be suitable for the effective securing of data of HSBC customers. This can bring about a reduction in the manipulation of information of HSBC customers by hackers.
Privacy
Data privacy is the component of data management that deals with personal data handling. The data handling is done by complying with the laws of data protection, general privacy and data regulations (Merhi et al., 2019, p.101151). The easy availability of information on virtual platforms causes HSBC's database data privacy challenges. This will lead to easy duplication of information by the hackers. The absence of encryption has led to easy breaches of data by hackers. There needs to be effective management for securing encryption and protection under the Key of Encryption Management. The issues of data security can lead to the stealing of information from the virtual repository. The hackers can additionally implement phishing through malware to uncover credentials.
Accuracy issues
Data accuracy refers to the records that are free from any errors and manipulation. This accurate data can be utilised for acquiring reliable information (Haq and Awan 2020, pp.41-53). The major issues affecting data management accuracy are the poor practice of data entry. HSBC can suffer from inaccurate customer information due to ineffective data governance. There can be issues due to improper regulation of the management of customer relationships (CRM). CRM can become the point of duplication, inaccurate and inconsistent data. This is because the portfolio of CRM in HSBC Bank can be accessed concurrently by marketing, sales and finance managers. There can be issues caused by non-maintenance of considerable data quality required by HSBC bank. This implies that IT, marketing and finance teams remain aloof from the information repository. This can result in improper segregation of relevant information about banking from irrelevant ones (Shankar and Jebarajakirthy 2019, p.53). The accuracy of data can enable the vendors of HSBC to know accurately the history of credit cards of its customers. This can ensure that the customers become eligible for lower fees and rates. There can be additional money aside for retirement and unexpected and emergency expenses.
Ethical Considerations
The customer has the option to opt in or opt-out.
HSBC bank gives directives to the customers by offering to monitor by Identity Guard (TRU??, 2018). The Identity Guard will monitor, control and protect the customers' credit data. The Guard of Identity comes with automated alerts that can notify consumers when an attack is possible. HSBC is offering this monitoring service to consumers for a limited period. The consumers need to sign up for this service within ninety days. The customers of HSBC need to affirm the services provided by the bank. This will lead to secure storage of data beyond the manipulation of hackers. However, the customers are given a voluntary choice in opting for the service within the period.
Related ethical issues
HSBC can face ethical issues in collecting, maintaining and using data to manage its customers. The issues consist of protecting customer information from cyber hackers (Li et al., 2021, p.5 Uncovering information can lead to the misuse of information by hackers. HSBC needs to collect precise information that is required for the operations of banking. HSBC can face challenges when a single customer's information is shared with other customers. This can cause issues related to the maintenance and sharing of data.
Artificial Intelligence
The sector of banking is making the adoption of digital technologies to boost customer management and prevention of security threats. Adopting AI in HSBC can lead to improvements in automation that are back-end to operations that are front e-ends. Therefore, digital technologies have used artificial intelligence that has intersected with data prices, security, ethics and accuracy (Garg et al., 2021, p.4). AI can help HSBC in the detection of fraud and identification of breaches in data security. This is crucial for the protection of personal information against hackers. The monitoring service of HSBC, Identity Guard, acts as a facet of the opportunities provided by artificial intelligence. Artificial intelligence can help estimate unusual activities and loopholes in banking activities. This can ensure that the customers and banking professionals are notified about the possibility of a banking breach. The adoption of artificial intelligence leads to effective dealing of cyber-attacks in dance before reaching the internal systems of HSBC, customer and employees database. This way, Artificial intelligence helps in solving issues related to data privacy, accuracy and security (Kaur et al. 2020, pp.1-5). The application of artificial intelligence helps in adhering to customer ethics. Customers prefer banks that properly protect their data without manipulation (Geebren et al., 2021, p.1). This can enhance the bank's capital deposits, leading to the retention of HSBC's position in the banking sector.
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Figure 2: Applications of AI in the banking sector
Source: (Marous, 2023)
It can be stated from the above figure the role of Artificial intelligence in the assistance of baking activities. These results in integrating banking functions related to customer satisfaction, marketing and data protection. HSBC needs an effective campaign of marketing for addressing the customers. The marketing campaign of HSBC needs to be accelerated as it has suffered from a recent attack by hackers. This can be done by implementing Artificial intelligence in the banking procedures of HSBC. Artificial intelligence can collect a massive amount of data about customers' preferences and decide on business plans (Kaur et al., 2020, pp.1-5). This effectively examines the latest trends in the market, stocks and currencies. The techniques of machine learning can help HSBC Bank to evaluate the way customers can react after a cyber-attack.
Conclusion
It can be concluded from the above discussion the challenges of data security, accuracy and privacy for HSBC. Ethical considerations have been considered in the study for helping customers whose account information has been stolen by hackers. The study has considered the role of artificial intelligence in mitigating these challenges.
Reference List
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Frazzetto, D, Nielsen, TD, Pedersen, TB, & Šikšnys, L (2019), ‘Prescriptive analytics: a survey of emerging trends and technologies’, The VLDB Journal, vol. 28, pp. 575-595, DOI: https://doi.org/10.1007/s00778-019-00539-y
Garg, P, Gupta, B, Chauhan, AK, Sivarajah, U, Gupta, S, & Modgil, S (2021), ‘Measuring the perceived benefits of implementing blockchain technology in the banking sector’, Technological Forecasting and Social Change, vol. 163, no. 120407. DOI: https://doi.org/10.1016/j.techfore.2020.120407
Geebren, A, Jabbar, A, & Luo, M, (2021), ‘Examining the role of consumer satisfaction within mobile eco-systems: Evidence from mobile banking services’, Computers in Human Behavior, Vol. 114, no.106584, DOI: https://doi.org/10.1016/j.chb.2020.106584
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Lepenioti, K, Bousdekis, A, Apostolou, D, & Mentzas, G (2020), ‘Prescriptive analytics: Literature review and research challenges’, International Journal of Information Management, vol. 50, pp.57-70, DOI: https://doi.org/10.1016/j.ijinfomgt.2019.04.003
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