Big Data and Artificial Intelligence transformed the way we live. With so much information flowing through servers each day, a lot of our capabilities have been improved. Finance is one of the sectors that handles and analyses huge amounts of data daily. It is heavily reliant on real-time information and has greatly benefited from the surge of Big Data. Here’s how.
Finance is attached with a load of risks which all need to be monitored real-time. Such monitoring is now possible with Big Data. Trends, anomalies, and threats can now be closely examined. Since information comes pretty much as soon as they were generated, responses to threats are also drastically quicker. The risks involved in taking particular actions are also accurately determined.
With a time series data set which carries so much detail and encompasses a wide interval of time, predictive models can now be created as a safeguard for the ever-volatile environment of the financial market. Backed by Big Data, financial decisions are now better informed.
Feeding Big Data into Machine Learning (ML) models create a system which continuously learns. Over time, ML systems become smarter. They make fewer mistakes and are more equipped as they are fed with information.
With Big Data, we are building systems that possess always up-to-date techniques to maximize the return on investment and to lessen the risk of downfalls.
Trading, for instance in forex, is now made simpler with Big Data around. Algorithms deal with the grunt work demanded by trading transactions. Now you don’t have to worry so much about the complexities and instead focus on laying down your financial plans.
While Big Data is great for business, it is not without its own flaws. Big Data can introduce bias if the data sets fed into ML systems have captured biases inherent in society.
Moreover, the benefit of Big Data is only as good as the techniques used to analyze it. With Big Data being a relatively novel concept, some might also be hesitant to believe that it can provide results that can be trusted. With this, analysts should continue to hone their skills to make sure that they get the right decisions out of the data they have on hand.
Indeed, great power entails great responsibility.
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