Bank Systems & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Data & Analytics

10:50 AM
Al Nugent
Al Nugent
Connect Directly

How Big Data Will Influence the Financial Space in 2015

Without faster and better analysis and visualization tools, financial institutions will be unable to comprehend relationships or patterns that exist within the data. This defeats the point of using it at all.

Financial institutions are among the largest commercial consumers of high-performance computing (HPC), and for good reason. HPC provides the foundation for valuable analytics important to financial institutions, embracing: trading (high-frequency and algorithmic); risk management; pricing and valuation of securities and derivatives; and business and economic analytics, including modeling and simulation.

The pressures to provide accurate, reliable financial analytics will push more financial institutions in the direction of HPC. Their veteran technologists will look for more efficient technologies for getting greater insights. For capital markets, providing real-time data and analysis -- faster and at a lower cost -- to make informed decisions is critical.

That is certainly true when competitors are gathering more and more data and getting increasingly creative with sophisticated approaches for technology application -- as in 2010 when UBS Investment Research used satellite surveillance of 100 Walmart parking lots and gathered data on the number of cars parked in those lots month after month. From space, analysts got a much different and more accurate picture of the company’s quarterly earnings than traditional methods did, based on the traffic surge the satellite images revealed compared to the previous year.

[For more on big data in financial services, check out: 'In-Memory' Enables Big Data -- Cheaper, Faster, Easier.]

Thanks to new technologies, “the times, they are a changin’” with HPC, and big data is leading the charge. Indeed, the evolution of big data has affected almost every industry. It's no surprise that the financial community has embraced it so avidly.

[Read the full story on Wall Street & Technology.]

Alan Nugent is a leading independent member of the Adaptive Computing Board of Directors. He is a senior executive with nearly 30 years of experience in managing and engineering the strategic direction for technology in global enterprises ranging in size from start-ups to $20 ... View Full Bio

Register for Bank Systems & Technology Newsletters
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.