Big Data is a set of high volume, high speed and / or high variety data that requires new forms of processing to improve decision making processes, research and process optimization. Its appearance in the 2000’s is explained by the fact that this set of data was difficult or impossible to process using traditional methods. Doug Laney (industry analyst) articulated the definition of Big Data as de three V’s:
- Volume: It refers to the extreme volumen of data that organizations must process.
- Velocity: There is a growing need to deal with these data torrents in near real time.
- Variety: Data comes in a wide variety of types. From structured (for instance,the numeric one) to unestructured (such as videos and text documents).
The importance of Big Data lies in the fact that with it you can take data from any source and analyse it to find answers that enable costs and time reduction, optimization and smart decision making.
About the relationship between Big Data and banks, it is important to know that the banking sector is one of the business domains that makes the highest investment in Big Data. Thanks to this relationship banks gets the data and from all the information contain, take out the useful and profitable information. In summary, Big Data has helped the banks in the following aspects:
- Personalized customer experience, where the bank uses Big Data to know their users and find new ways to cater to them.
- User segmentation and product targeting: by using Big Data, you can better understand your customer’s needs and also to pinpoint problems in your product targeting.
- Business process optimization and automatization.
- Improved cybersecurity and risk management by identifying fraud or preventing terrorist activities.
- Better employee performance and management.
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It’s true that it shows some disadvantages, but so does every new technology that has developed within a few years. What we have to do is think about it as a new hit that will change and already is changing, among other technologies, the financial world and our perspectives.