Big Data is a big topic in academic and high-tech circles. And in case you haven’t noticed, it’s a big — and growing — topic in financial services too.
In the next few years, expect big data to change the way financial services firms approach almost every part of the business, from asset and risk management to determine credit worthiness and trading, according to a new white paper from BNY Mellon.
The paper, titled “The Transformational Influence of ‘Big Data’ on the 21st Century Global Financial System,” predicts the financial system in the early 21st century will evolve even more quickly than it did in the late 20th century and big data will lead to new approaches in all phases of financial markets, including asset management, research, analytics, asset allocation, trading, and risk management, according to the report. For example, fundamental equity and credit analyses likely will become even more granular in detail and lead to greater emphasis on issuer differentiation.
