The enormous potential of big data in finance
Did you know that one trillion data units are produced in the world every day and that this number keeps on increasing? The data landscape has changed considerably, especially recently, with 90% of the available data being produced in the last two years. What are the benefits of big data? And more importantly, what is the potential of big data in finance?
Read on to discover how to use big data to the advantage of your organisation
Opportunities for finance departments
Our annual FinTech Barometer found that 45% of finance professionals regard big data in finance as one of the most influential trends. On top of that, a study conducted by Graydon indicates that companies that base their decision-making and business processes on big data perform 20% better than those that don’t. How does that work?
* The value of big data in finance does not necessarily lie in the volume of the data, but in how to analyse the information. When gaining insight into processes and information flows, as a finance professional you can identify patterns that inspire the creation of new business models and the development of new markets.
* Besides using it for predictive purposes, you can use big data in finance for improving (financial) risk assessments and providing fast insight into the company’s current status. It enables a more accurate assessment of the risks involved in issuing loans and insurance policies.
* Effective use of big data in finance enables companies to identify factors that will improve efficiency and ultimately reduce costs, reducing directly in an increase in profitability.
Expanding the skill set of finance employees
In the past, finance professionals – especially controllers – have always dealt with figures. Now however, the ability to extract insights from data on customers and the market allows them to look into the future. This calls for finance professionals to adapt within their role and widen their skill set. It will enable them to gain insights and identify new patterns that can help form the basis for better decisionmaking within the company.
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