Future of Big Data & Digitalization Finance Industry
Mbem Dissack , Georgy Dupont
MetadataShow full item record
The world is increasingly changing affecting everything within it with a human being in front line. The advent of the internet has had a tremendous impact on human life. It has influenced all aspect of human life changing, for instance, the way peoples behave and interact in the society, conduct businesses, consumer products and services. Humankind is clearly in engaged in its third industrial revolution characterized by widespread emerging of information and communication technologies. The author of this paper has labelled this period of this century the New era of social changes to emphasize on the fact that he believes it to be the turning point of the current industrial revolution. Arguments to justify his claim are that previous two revolutions lasted more than half century and it has been more than twenty years now that internet became part of human life. If so, far internet technology has speeding up life and making peoples dependent; the next upcoming thirty years and plus might be the best of this revolution. Notably, due to the advent and upgrade of new digital internet-based technologies such as Big data management and analytics tools, IoT, 5G, Cloud Computing, AI, Quantum and Cryptography technology, VR/AR, blockchain just to name few. The author of this paper believes that the particularity of this revolution with the help of its technologies is to bring the digital world as closer as possible to human being and its environment. If in the past technology was developed to boost productivity, now it aims is to put everything at a hand- reach of human being. One could even imagine a distant future were technology make one with human a kind of ‘’Cyborgification’’. The bottom line is that consumers no matter which age do not live as thirty years ago, thus consume products and services differently as well. Currently, four main active generations make up our society (Baby boomers, Generation X, Millennials, generation Z). Arguably, in this paper it was suggested that consumer profile should not be reduced to the year they were born. Age is the inappropriate focus in this new era of social changes. Instead, the center of interest should be identifying consumer’s level of digital activity, if they own a smartphone, an e-mail, use Google or social media. the author suggests the term ‘’eGeneration’’ which stand for engaged generation to identify and describe current consumer’s behavior culture. Even though it is not an age group or that it encompasses main active generations, keys characteristics eGeneration remain the level of internet presence or digital device ownership. In fact, the internet is now an integral part of social life, if for young generations it is even like an extension of themselves, a lifestyle, others, the old generation is adapting or even increasingly compelled to do so. One might wonder why is all this relevant for the future of big data in finance? Well, putting such research in context make less general and deepen the analysis. Furthermore, talking about big data without introducing the type of people producing them online would have made this paper less relevant. Importantly, the author to draw this picture to introduce his sound argument on why and how Customer-Centricity approach is appropriate for the context of digitalized Data-Driven Finance Industry. New revolution, new type of consumer, new business models were created as mentioned in this paper to leverage the power of digitalization. In finance big data would be increasingly useful for customer engagement and experience, risk management, cybercrime and fraud and market trading analysis. Drivers such as data growth and cloud computing and digitalization will surely boost activities in the field. However, it would not be without challenges. Notably, abandon old culture and infrastructures, professional’s skills shortage, data privacy and security. In any case, future of finance cannot be imagined without the influence of big data & digital advanced technologies. In financial market for instance, a practical example namely Blackrock with its system call ALADDIN will be mentioned in this paper to elaborate on how big data would be leverage in the field. How about automate high frequency trading? In financial service big data will increasingly play a more critical role in the improvement of the efficiency of risk management including risk-based price and rating. Or psychological predisposition of borrowers toward revenue generation and spending pattern, vital information that could to be considered when elaborating a credit score rating system. Moven Enterprise and its partners digital customer-centric approach will serve as an example. Technology such cloud computing with its unlimited storage capability will be of a greater benefit for financial big data processing in the future. While AI will be optimized automation, speed, accuracy and efficiency in finance industry. Thus, 5G is more than welcome not only to powered AI but also to speed up the flow of information for an optimum financial front end Realtime experience. How about the relevance that Quantum computing and cryptography would have on a distant future of finance industry? Technology like blockchain is already using cryptographic techniques. Cryptocurrencies aims to establish itself as an alternative or even a replacement of the current financial system in the future. Furthermore, the future of finance industry will surely be impacted with IoT. The fact that financial industry relies heavily on data, make it apparent that customer data systematically collected on their environment would constitute great commodity. The author of this paper believed that, the fact that financial institution will become physically far and digitally at the fingertip of its customers would constitute greater advantage driving far more benefits. In this perspective, customers’ trust will be put essentially on the technology.