Leading financial services provider reduces data preparation cost by 95% using Lore IO

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Financial Services

The customer is a leading financial services provider in global growth markets. It enables billions of people and millions of merchants to buy and sell online. Its local operations span over a dozen markets internationally.

The customer deploys hundreds of payment methods and PCI certified platforms to process approximately over a million daily payments. It collects data from 6 disparate sources, including CSV files, SQL databases and NoSQL databases.

The finance team of the customer struggled to produce timely and accurate gross margin reporting based on commissions it collected from merchants and payments it made to banks. The data preparation process was time consuming and error prone for several reasons:

  • The customer lacked a system that could collect all data into a unified and rationalized view 
  • The customer needed to compute rates and gross margins using complex formulas with numerous inputs that changed across transactions, banks, cards, offers, and merchants 
  • Analysts had to enter and reconcile rates manually, which introduced errors that were left uncaught, leading to revenue loss

As a result, analysts had to spend 20 hours every month to standardize data manually in MS Excel. Business leaders, such as the head of the P&L group, was forced to wait until the end of the month to receive gross margin data, which was at times faulty. 

The Solution

The customer selected Lore IO to integrate its rich transactional data into a virtual data layer that the finance team can tap to build accurate and timely views. Lore IO eliminated all ETL operations, including the need to move, copy, or clean the data in code or in spreadsheets.

The operations team simply dumps the raw transactional data in Lore IO nightly. The Lore IO platform ingests a dozen of inputs, flattening and standardizing the data, enabling the customer to build virtualized data marts for merchant, payment gateway, and transaction views.

Lore IO includes a sophisticated rule engine that computes rates, gross margin, and other key financial measures programmatically based on conditions that are easily updated by analysts. All data transformation is done declaratively, executed virtually at query time. The finance team builds dashboards and reports to visualize revenue and payments and to calculate gross margins.

The Results

Using Lore IO, the customer reduced data preparation cost by 95%, from 20 hours to merely 2 hours a month. Data latency has been cut by 97% with new data made available daily instead of monthly. Finance now evaluates gross margins by merchant, payment gateway, region, and card category.

With Lore IO, all data entry errors were eliminated, providing the business with trustworthy data to make smarter decisions and eliminate lost revenue.

The customer is planning to expand its use of Lore IO, availing the Big Data management platform to its operations team to enable automated monitoring of and alerting for data quality issues. It also plans to extend Lore IO to its business teams to execute 360-degree customer analytics.

The Bottom Line

  • 95% reduction in data preparation cost
  • 97% reduction in data latency from source system to BI
  • No ETL: Complex rate and gross margin calculations done declaratively at query time