Hewlett-Packard, SAS Institute Set Up Data Mining Outsourcer
Luhby, Tami, American Banker
Hewlett-Packard Co. and SAS Institute Inc., two leaders in data analysis technology, are teaming up to create a data mining laboratory.
Their Data Insight and Discovery Center, in Cary, N.C., is an outsourcing facility that can handle data analysis projects for banks and other companies.
Data mining-the ability to sift, analyze, and act upon vast stores of customer and market information-is gaining in importance as banks encounter increasing competition from nonbank companies. While 17% of banks with more than $1 billion of assets mine data, another 60% plan to adopt or evaluate these systems, according to Mentis Corp. of Durham, N.C.
The laboratory can help banks with customer profitability measurement, risk assessment, fraud detection, and marketing.
Prices for projects at the data center start at $30,000. Analyzing data and presenting reports to clients usually takes four to six weeks, said Dennis Massengill, SAS Institute's manager of enterprise technology partners.
The facility has no clients yet, but several banks have expressed interest, Hewlett-Packard said.
Joseph Haren, senior vice president and chief information officer at FirstMerit Bank, Akron, Ohio, said he would consider using the lab as a way to streamline data analysis.
The $5.3 billion-asset banking company now analyzes its own data using SAS Institute software and Hewlett-Packard servers, Mr. …