Listen to Neil Palmer discuss these trends in a podcast with Michael Versace of IDC Financial Insights.( http://capitalize-on-change.com/resources/big-data-trends-transforming-financial-services-part-1.aspx )
SunGard has identified ten trends shaping "big data" initiatives across all segments of the financial services industry in 2012. They are:
1. Larger market data sets containing historical data( http://www.sungard.com/campaigns/fs/globaltrading/marketmap/historicaldata.aspx ) over longer time periods and increased granularity are required to feed predictive models, forecasts and trading impacts throughout the day.
2. New regulatory and compliance requirements are placing greater emphasis on governance and risk reporting( http://www.sungard.com/%7E/media/campaigns/financialsystems/globalservices/audio/globalservices_audio_sorenmortensen_datagovernance.ashx#328FC830-C3F3-4DD7-A710-F704A55703C7), driving the need for deeper and more transparent analyses across global organizations.
3. Financial institutions are ramping up their enterprise risk management frameworks( http://blogs.sungard.com/ten/insurance/providing-greater-erm-visibility-throughout-the-organization ), which rely on master data management strategies to help improve enterprise transparency, auditability and executive oversight of risk.
4. Financial services companies are looking to leverage large amounts of consumer data across multiple service delivery channels (branch, Web, mobile) to support new predictive analysis models in discovering consumer behavior patterns and increase conversion rates.
5. In post-emergent markets like Brazil( http://blogs.sungard.com/ten/efficiency/struggling-with-rising-%e2%80%9crun-the-bank%e2%80%9d-it-and-operations-costs-in-brazil-there-is-a-solution ), China and India( http://blogs.sungard.com/ten/banks/cultivating-wealth-management-in-asia-trends-and-challenges), economic and business growth opportunities are outpacing Europe and America as significant investments are made in local and cloud-based data infrastructures.
6. Advances in big data storage and processing frameworks will help financial services firms unlock the value of data in their operations departments( http://www.sungard.com/%7E/media/financialsystems/whitepapers/stream_whitepaper_datasilos.ashx ) in order to help reduce the cost of doing business and discover new arbitrage opportunities.
7. Population of centralized data warehouse systems will require traditional ETL (extract, transform, load) processes to be re-engineered with big data frameworks to handle growing volumes of information.
8. Predictive credit risk models that tap into large amounts of data consisting of historical payment behavior are being adopted in consumer( http://www.sungard.com/increaseyourliquidations ) and commercial(http://www.sungard.com/en/sitecore/content/campaigns/fs/corporations/avantgardreceivables/solutions/receivables/predictivemetrics.aspx ) collections practices to help prioritize collections activities by determining the propensity for delinquency or payment.
9. Mobile applications( http://www.capitalize-on-change.com/resources/mobile-strategy-and-solutions.aspx ) and internet-connected devices such as tablets and smartphone are creating greater pressure on the ability of technology infrastructures and networks to consume, index and integrate structured and unstructured data from a variety of sources.
10. Big data initiatives are driving increased demand for algorithms to process data, as well as emphasizing challenges around data security and access control, and minimizing impact on existing systems.
Gert Raeves, research director at CEB TowerGroup, said, "The management of data in financial services is a perennial challenge. Data drives every trading and investment decision, is transmitted along the service chain, and is the root cause of many risk and liability mitigation challenges for both the sender and receiver of data. Although overall data management investment is increasing, most financial services firms are not prepared. In fact in our recent survey of securities and investments executives, 57 percent of respondents indicated that their firm did not have a 'mature' strategy in terms of data ownership, governance, and data stewardship." *
* CEB TowerGroup, "Six Pillars of Innovation in Data Management: Escape the Orthodoxy Trap and Focus on Value": CEB TowerGroup, November 2011, Pages 1 and 3.
About SunGard
SunGard is one of the world's leading software and technology services companies. SunGard has more than 17,000 employees and serves approximately 25,000 customers in more than 70 countries. SunGard provides software and processing solutions for financial services, education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software. With annual revenue of about US$4.5 billion, SunGard is the largest privately held software and services company and was ranked 480 on the Fortune 500. Look for us wherever the mission is critical. For more information, visit www.sungard.com( http://sungard.pr-optout.com/Url.aspx?514340x963981x497620 ).
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