We’ve talked before about how Big Data and other technology trends have helped businesses in the financial industry see gains and stay competitive.
Indeed, “there’s a lot of opportunity to apply new data sets and new algorithms,”Rod Bodkin, founder and CEO of Think Big Analytics, tells InformationWeek. “Fundamentally, we see Big Data coming in and letting people solve problems that were never before solvable.”
That’s particularly true when it comes to finance and banking. Let’s take a look at some of the specific the ways companies in the financial industry are boosting business with some of the latest tech trends.
Social media innovations. In financial trading, brokers are analyzing data from social media streams from Twitter and other outlets to weigh sentiment about a company or industry. “You want to see a combination of sentiment plus some other factors like fundamentals, trading activity, and trending over time,” Bodkin says.
Behavior profiles. Some companies, like Russian bank Tinkoff Credit Systems, are using Big Data to scrutinize customers and make decisions. The company creates customer behavior profiles that show search histories, social media activities, payment histories, and device and browser types. The company uses these profiles to gauge risk and score customers, coming up with an expected value for each customer.
High-frequency trading. In this model, traders use a combination of hardware and software to see how much someone else is willing to buy or sell for fractions of a second before their competition does. The technology is critical in achieving high levels of sophistication in both hardware and software, so you can count on high-frequency traders to be at the forefront — using things like hardware-accelerated network stacks and NPUs or custom-designed FPGAs to gain advantages.
What other use cases of the latest technology trends are you seeing specifically applied in the financial industry?