The use of analytics – otherwise called big data, machine learning, data science and many more – in FinTech is not a new concept. The growth in data or data explosion is a function of multiple technological advancements. Adoption of cloud, mobile technologies and apps, wearable devices, intelligent/smart networks and systems, Internet penetration and usage, are some of the major factors for growth in overall data. To put this into perspective, IDC estimated that the digital universe is doubling its size yearly and would reach 44 ZB in 2020 from 4.4 ZB of data generated in 2013. It also forecasted that the big data technology and services market will grow at a 26.4% compound annual growth rate to $41.5 billion through 2018, or about six times the growth rate of the overall information technology market. The ability to draw insights and the ability to optimally monetize available data would place companies in a unique position, challenging established rules and processes. Low-cost storage technology, smartphone and app usage, and cloud are underlying forces which propel the requirement of big data and analytics.
The Strategic Insights paper on Big Data Analytics in US Financial Services provides a comprehensive view of the segments, technologies, leading financial service providers tech focus, and why a financial services firm needs to invest in Big Data.
Note: Strategic Insights are long form articles written by MEDICI analysts about a specific FinTech topic, trend, region, news category or industry segment. Insights are collected via direct interaction and dialogue with industry players and thought leaders. Strategic insights can be integrated with the related Segment Snapshot, Research Report or Infographic for a more detailed analysis.