May 21, 2012-If there’s one thing financial world loves, it’s finding an angle. Yes, it’s led to a lot of legal headaches recently, however many are finding new life thanks to big data. But many financial institutions, reeling from rotten numbers over the last decade, are slow to adopt. We learned about the good side from a recent Computerworld article, “UK Investment Bank Point to In-Memory Analytics to Tackle Big Data.”
According to the story, “The increasing amount of data being made available to banks, coupled with the speed that it is provided and the desire to conduct real-time analytics to reduce latency, is driving the move towards in-memory analytics…A quarter of institutions surveyed already use in-memory computing to overcome these problems, with a further 50 percent intending to adopt it in the next two years…In-memory software can improve data analytics by a factor of 14,000. So, a request can now take just one second, where it previously took five hours.”
This is just one example of a financial institution jumping onboard with analytics. According to Search Data Management, one financial institution claimed “all financial reporting has been done in Excel and [the work] offline” until they switched over to big data software. Which is like going from pedaling a tricycle to piloting an F-15. This leap is, according to the story, helping “move finance up the food chain from being bookkeepers to being business advisers.”
However, not everyone is increasing their profile thanks to analytic financial work. A recent The Street piece looked at how underused analytic providers, like Oracle, are. The problem lies, according to the story, with education. “Along with ‘cloud computing,’ the term ‘big data’ has become the buzzword of buzzwords on Wall Street. Though there are many who will jump at the chance to offer an opinion on the new craze, there are very few analysts that can describe what the concept really means — much less appreciate its real potential.”
What we get is a disproportion. Those who are embracing big data are rising, while those afraid of change are stagnant or worse. This is a wonderful opportunity for someone to begin offering financial analytic training. The market is hungry for more knowledge, not just buzzwords. We think, in a year, this kind of talk will be irrelevant, because so many will be onboard.
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