Are banks further behind the digital age than first thought? In a story earlier this year on the
FT, they revealed that most investment banks still rely on overnight batch data to make trading decisions.
To quote the article exactly, it says: “In the financial services sector, most investment banks still rely on overnight batch data to make trading decisions. This means their risk management models constantly rely on out-of-date data. By using big data analytics
in real time, banks can make better trading and risk decisions, safeguarding them against the threat of collapse and, subsequently, protecting the financial markets.”
It’s now three months on from when that article was published, but still the media are highlighting that big data is an issue for businesses. Despite the term being around for almost a year now, it could be that many organisations are not making the most
of what big data has to offer.
In such a competitive sector that usually always uses the best of breed technologies to defeat other competitors, the financial sector in particular should be exploiting the intelligent predictions that come from using big data. In an
earlier post, I mentioned that big data could be the dawn of Artificial Intelligence which could intercept faults and prevent bad trades. Therefore, any financial organisations not already
preparing to benefit from the data they possess are at a huge disadvantage.
Alarm bells should be ringing if financial organisations are still using outdated analytical systems – not only for the obvious reasons that it’s not presenting data in real-time, but the knock-on effect that has when put against competitors. The ability
to access data in real-time is becoming a key driver to provide significant business benefits, and with the IT architecture required to support this changing rapidly it is imperative that businesses understand their need to access data in more rapid timeframes
than ever before.
The reality is that there are organisations in the financial sector that are using big data to its full potential and are already seeking ways to adapt and develop their strategies. It’s not something that should be put to the backburner, but an integral
part of the business strategy.