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Modern Big Data Usage Trends Indicate The Fate Of Finance Industry In 2019



Modern Big Data Usage Trends Indicate The Fate Of Finance Industry In 2019

Modern Big Data Usage Trends Indicate The Fate Of Finance Industry In 2019

Big data has taken the financial service industry by storm and the current trends show where this industry is heading towards. With the use of big data the accountants, loan officers, risk assessors and the final decision makers now do not have to hover over the calculating or adding machines. Long gone are those days.

With the modern day advanced technology taking control of different things now it is easy for the financial advisors and the management team to ‘see’ practically where things and they are going with the duties of the modern day accountants cut up. Soon, it may be taken over as well by more conventional methods.

Research and several studies show that big data is consuming lots of current and important financial duties most effectively as well as defining others. In addition to that it is helping the finance industry and its players in other allied areas of service such as:

  • Reinventing the traditional role of the accountants to transform them into more modernized players
  • Relying on analytics of different metrics to perform the financial operations more accurately and
  • Making logical implementation of large number of data sciences and information required by the companies and produced on a daily basis.

Practically speaking, the use of big data system and data management platforms has in fact proved to be the most beneficial tool for both the borrower and the finance sector.

  • As for the finance sector such as banks and other online money lenders, they can now make more accurate lending decisions with better predictive analysis. It reduces the risk of ‘bad lending’ and defaults.
  • As for the borrowers, they get what they can afford to repay and hence do not have to worry about falling behind on their debt repayment schedule and look for immediate reliefs from their debts from sources like or others.

On the whole, both the parties involved in the finance industry can now perform their respective duties with more confidence.

Data Streams and KPIs

Big data usage has helped the finance industry to assess the different data streams and Key Performance Indicators and establish a perfect balance between the two with the proper analysis. It has helped them to discern the necessary and more important insights enabling them to find the right uses of the data, know where it comes from and the best ways to measure it.

Empowered with accurate financial analytics, this tool helps them to identify and track the data source in the right ways. There are different channels from where data can be acquired that will prove useful for the finance service providers to different types of metrics and their analysis. These include:

  • Transactions: In order to ensure business success simply relying on large volumes of transactions alone may not provide a reliable and accurate measure. This is because bigger numbers and a series of investments made may not imply automatic earning of larger revenue as the cost of it may be higher than the returns. With better transaction data now the finance service providers can know the cost of every investment or deal as well as the margins of each to make a better investment decision.
  • Expenses and revenues: When the cost is known regardless of the specific services provided, the expenses on overheads can be reduced. Larger revenues can be generated with the analysis of larger amount of historic and important trend data. Such data will include everything allied such as payrolls, utility costs, and income from transactions, fixed costs like leases, operational costs, and debt payments.
  • Debt Data: For all financial services providers the client debt is an important data as it represents both a liability as well as an asset to them. Money lenders must typically keep a track of all their paid debts, the outstanding debts, as well as the interest rates. Such knowledge will help them to a great extent to make important consideration while expanding their business, making any investments, or setting up their future strategies and lending policy and levels. With better understanding of the impact of transactions they can make better loaning decisions.
  • Periodic Financial Data: For all types of financial services companies such as banks, investment funds, and lenders it is important for them to know their growth rate over time with specific measures such as cumulative or Compound Annual Growth Rate known as CAGR. This is a very important factor that will help the finance companies to update their investment and lending strategies and at the same time build new ones as well.
  • Shareholder Data: Information about the benefits, earnings, and dividends of the shareholders play a significant role in the finance industry. These dividends are paid as a percentage of the profits and earnings on each share. Therefore, big data will provide useful data to determine the value of the shares to make major financial decisions eventually.

Therefore, you can deduce that big data plays a pivotal role in the success of the finance companies both in the short as well as in the long term.

More automation expected

With the prevalence of big data and machine learning in the finance industry, it is expected that there will be more automation of different processes that are involved in making a financial transaction. This will ensure much safer and more secure transaction as all the mundane duties of the employees will be done in a much better way.

With such automation of the everyday tasks, the employees will now have more time and energy to focus on other areas of business to resolve more significant and complex issues and make their services better.

Therefore, automation will transform the financial industry on the whole into a more active sector than it is currently. The transformational power of big data is helping the financial services realm with better analytical insights that empower the financial analyst to track bonds, stocks, and other investments to counsel their clients and build stronger portfolios creating new positions and make the economic future better and brighter.


Praneet is the CEO and Editor of the website He is a blogger and have varoius blog on various topic and he is from India who loves to read and write about Technology, Gadgets and Gaming. If you share the similar interests then you can follow him on Facebook | Google+ | Twitter

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