The Emerging Role of Big Data in Financial Services

Abstract

Financial services industry has always been a data-intensive industry, generating large quantities of customer data from millions of transactions conducted every day. Vast explosion of data and the surge in technological complexities is transforming the way the financial sector operates, and thus, Big Data management of various financial products and services is emerging as a potential field of study. The application of Big Data in financial services has abundant advantages for the financial institutions: improved customer engagement, better fraud detection, and enhanced market trading analysis. This chapter presents applications of Big Data stimulating various financial sectors and highlights its influence on financial markets, financial institutions, fraud detection, risk analysis, etc. The association between Big Data and finance-related mechanisms is analyzed through an exploratory literature assessment. This chapter also describes real world, contemporary case studies on the applications of Big Data in the financial world. The findings demonstrate that there are many technological research challenges at all levels of Big Data chain that need to be developed to provide more competitive and effective solutions. Since Big Data is a relatively new concept in the field of finance, this study also provides directions for future research.