In our current age of information technology, nothing is more ubiquitous than data. In fact, it is considered one of the most highly valued commodities in the management of automation systems.
For the financial services industry, large amounts of data (Big Data) form the underpinning of typical daily operations, from wealth and trading management platforms, mobile payments, crowd-funding, peer-to-peer lending, and more.
Financial firms use Big Data from both external and alternative sources in order to make salient, competent financial decisions for themselves and their clients.
Using predictive analytics, they can monitor financial patterns to develop better decision-making models, gaining valuable insights that can be used to further financial goals, develop and implement risk management policies, and improve the overall success of financial strategies.
However, there are four major challenges that must be carefully addressed by executives and their C-suite counterparts when combining finance and Big Data to keep risks to a minimum and ensure the successful application of data-driven outcomes.
While there are myriad roadblocks when it comes to processing large quantities of financial data — from the sheer volume of data that must be processed, the potential processing speed, the way the data is structured, and finally, the value of the data.
However, there are deeper and perhaps even more impactful elements to consider when working with Big Data in a financial service setting:
Financial firms need to do more than simply archive their data — they want to use it. However, data that is garnered from a number of different sources presents a problem when it comes to data management.
That is where real-time data analytics tools and information processing systems combine to bring real data integrity — improving usefulness while speeding up insights with precision.
We have already pointed out that data comes from many different places such as resumes, emails, applications, proposals, and others. Reconciling mass quantities of data from such diverse sources require data integration systems that can help capture, manage, store, and share this data.
Adopting cloud-based storage solutions and document or enterprise content management systems can facilitate data storage and retrieval and speed up the analytical process.
Most financial institutions operate under a number of regulatory requirements such as Sarbanes-Oxley (SOX) and even the Trading Book’s Fundamental Review (FRTB) and Financial Industry Regulatory Authority (FINRA) that outline specific requirements for reporting, access, and data protection.
Technologies that help manage Big Data, such as document management and Managed IT services can help increase compliance cost-effectively while transforming data sets into usable insights.
Cybersecurity goes together with regulatory requirements, both of which point to the need for the financial industry to be conservative and protective in managing the large quantities of sensitive information they are typically privy to.
However, cybersecurity is not a one-and-done operation; it requires full-time effort by a qualified IT team to manage routine security tasks and protect data from emerging threats. For many companies, this puts stress on their already overburdened IT departments. For smaller financial services firms, lack of an in-house IT team can cause holes in their security protocols.
The best and most cost-effective solutions for either scenario is reliance on a competent, third-party managed services provider with targeted knowledge in the field of cybersecurity.
If the idea of organizing, accessing, controlling, and protecting mountains of siloed data, possibly in a legacy software system, is daunting, we have a smart, cost-effective solution that can help you get the most from your data starting now.
At Virginia Business Systems (VBS), we have a host of software, services, and solutions that can free your data from the constraints of silos, improve data quality for better insights, and ensure your data is protected with leading-edge security.
Our document and enterprise content management systems can help you convert paper documents to digital, then archive them in an easily retrievable format with strong access controls for extra security.
And, our team of IT experts will act as an extension of your in-house team, bringing depth of knowledge in the area of cloud services, managed IT, predictive analytics, and cybersecurity to offer you the right combination of tools to help your company easily and successfully manage your data load.
Get the most from your data today. Contact VBS today and let our team of IT experts help you control, access, manage, and secure your data resources.