Big data analytics is a big topic within the financial services sector and confusion and controversy reigns on how to utilise big data for real business intelligence. Hanne Boffey considers what the future holds for this area and for those working within it.
I was sorry to miss the second annual conference on Big Data and Analytics for Financial Services in London earlier this summer, organised by PEX.
Big data analytics is a big topic within the financial services sector and confusion and controversy reigns on how to utilise big data for real business intelligence. The conference saw data innovators from Barclays, HSBC, JP Morgan, UBS, RBS, Morgan Stanley and others sharing deep knowledge of how big data will transform the future of financial services organisations through advanced insight and analytics into risk, trading, customers and operation.
What is big data analytics?
Big data analytics is not only about analysing customer data for marketing or market intelligence purposes; analytics competence is sought after across a wide variety of business functions for different purposes. It is also valuable across many industries, although the consumer centric ones will probably see the most benefits.
The PEX conference showcased analytics expertise in: utilising big data for business, risk and market intelligence; addressing operational, market and trading risk; showing how real-time data can add value to your organisation; and leveraging customer data across multiple service delivery channels to uncover consumer patterns and requirements.
What does the future hold for big data analytics?
I am in no doubt that big data analytics is an area that will see exponential growth in demand. This will lead to shortage of resources which, combined with the fact that this is a new area where trial and error could prove to be an expensive strategy, is why all the big consulting firms and smaller specialist consulting firms are building up their intelligence and analytics practices aggressively.
For example, Deloitte discusses the value of big data analytics across: customer and products insights; fraud and error prevention; workforce optimisation; operational efficiency; and financial performance. Similarly, Boston Consulting Group claims in a recent press release that cross-industry integration and big data will open a world of innovations in global mobility by 2025 and radically improve how people travel and transport goods.
A lucrative future for big data analytics experts
One of the most successful technology IPOs last year – only beaten by Facebook and Workday – was the big data start-up company Splunk, who experienced an astonishing 108.7% jump in share prices on Wall Street during the first day. Big data analytics is definitely ‘big business’ and shortage of resources will drive salaries on in-house roles as well as consulting volume. So if you are a big data analytics expert – and ideally have a PhD, MSc or MBA to go with it – then your future looks very lucrative!