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Financial services firms to embrace real-time analytics

A growing number of companies in the financial services sector are set to upgrade their big data analytics initiatives to include real-time solutions, a new report has claimed.

A study by TABB Group noted there is an increasing understanding in the sector that the value of a given piece of data can be lost almost immediately as it becomes outdated. Therefore, capital markets firms are turning to real-time analytics for activities including risk management, compliance, consumer metrics and turning insight into revenue.

Author of the report Monica Summerville noted that simply having data is no longer useful, and traditional ways of thinking about analytics, such as data warehousing and batch-led approaches to analytics, no longer apply.

In today's environment, firms must be able to find and act on patterns in incredibly large data sets in real time, while also being able to reference older, stored data as part of a streaming analytics operation without reverting to batch processing.

"The market for real time big data analytics is potentially as large as business intelligence, real-time streaming and big data analytics combined," Ms Summerville said. "The most successful approaches understand the importance of data acquisition to this process and successfully combine the latest open source technologies with market leading commercial solutions."

Implementing effective solutions for this will be challenging and requires companies to invest in software, hardware and data, as well as personnel with expertise in the sector.

Therefore, in order to ensure businesses can see a quick return on investment, TABB stated they will have to take big data analytics 'upstream' by layering streaming and static big data sets to support real time analysis of combined data sets. 

Such capabilities will be a key requirement if financial services firms are to progress to technologies like machine learning and other artificial intelligence based analytics.

Ms Summerville said: "We believe the upstream analytics approach will increasingly be adopted throughout the industry in response to industry drivers, an unending desire for new sources of alpha and the rising complexity of investment approaches."