by Joey Jablonski
Big Data is helping to improve the way banks and other financial institutions make loan and credit decisions. These improvements protect the institutions' business, allowing them to better serve their clients. With the introduction of big data applications, a broad range of external sources can be tapped to collect information. This can include economic databases, social networks, micro geographical statistics, e-commerce data, and any other number of varied sources. In some cases, when employing big data scoring technology to analyze a customer's creditworthiness, financial institutions can make use of nearly 10,000 data points all in real-time.
Additionally, a heretofore underused opportunity for financial institutions to benefit from big data technology is through back-testing software - the process of testing a predictive model, or trading or investment strategies, by using existing historical data. By doing so, these organizations can attempt to estimate the performance of a specific strategy as if it had been used during a prior period of time.
Big data adoption is an important step for an industry that produces an incredible 50 billion data points every day! To meet this growing need to better manage, analyze and utilize big data, new offerings are being deployed by the industry - including the Dell™ | Cloudera™ Apache Hadoop Solution powered by Intel, and the RA and In-memory appliance.
You can read a study about big data and the financial services industry here, and to learn more about how big data's positively impacting the industry see insideBigData.