The world of finance is going to be drastically altered by “big data.” That’s the conclusion of a recent white paper released by BNY Mellon. Written by Jack Malvey, BNY Mellon’s Chief Global Markets Strategist, the paper predicts that new approaches, analytics, research, and management techniques around “big data” will rapidly transform the world of finance.
Over 3 years ago, WAIN Street found its way to “big data” while developing the Business Credit Health Index (BCH Index). “Big data” allowed us to solve the challenges of understanding business credit health. So of course it will come as no surprise that we agree with Mr. Malvey’s opinion, taking only slight exception with his implication that it’s an upcoming trend. “Big data” is here today transforming the world of finance.
The BNY Mellon paper emphasizes that the insight “big data” creates will have far reaching and transformative effects. Paradigm shifts and different ways of solving problems become possible when new data is introduced into the equation. The BCH Index is a prototypical example of how big data can be used to solve old problems.
Here’s another example of “big data” changing something as basic and crucial as how we gauge inflation: http://www.wired.com/business/2013/10/next-big-thing-economic-data/