Big Data Trends in Financial Services
Big Wall Street firms are finding ways to harness the power of big data in decision making process from customer acquisitions to portfolio management. Here is a look at what SunGard is forecasting for the Wall Street.
SunGard has identified 10 trends shaping big data initiatives across all segments of the financial services industry in 2012:
- Companies require larger market data sets and deeper granularity to feed predictive models, forecasts and trading throughout the day.
- New regulatory and compliance requirements are placing greater emphasis on governance and risk reporting, driving the need for deeper and more transparent analyses across global organizations.
- Financial institutions are ramping up their enterprise risk management frameworks to help improve enterprise transparency, auditability and executive oversight of risk.
- Financial services companies are looking to leverage large amounts of consumer data across multiple service delivery channels to uncover consumer behavior patterns and increase conversion rates.
- Emerging markets like Brazil, China and India are outpacing Europe and America as significant investments are made in local and cloud-based data infrastructures.
- Advances in big data technology will help financial services firms unlock the value of data in operations to help reduce costs and discover new revenue opportunities.
- Traditional data warehouse systems will need to be re-engineered with big data technologies to handle growing volumes of information.
- Predictive credit risk models that tap into large amounts of payment data are being adopted in consumer and commercial collections practices to help prioritize collections activities.
- Mobile applications, tablets and smartphones are creating greater pressure for company networks to consume, index and integrate structured and unstructured data from a variety of sources.
- Big data initiatives are driving increased demand for algorithms to process data, and emphasizing challenges around data security and access control as well as minimizing impact on existing systems.