Big data & analytics for banking new york lars hamberg

Lars Hamberg

Predictive Analytics in The Investment Industry

BIG DATA & ANALYTICS FOR BANKING SUMMIT December 1 & 2, 2015 | New York

STRATEGIC SCOPEOVERVIEW & OUTLOOK

QUESTION:

Has Big Data failed

QUESTION 1:

Has Big Data failed …to deliver on its hype?

Big data defini'on?

Big data defini'on? “too large OR complex for tradi'onal processing methods”

general blur ? buzzwords and distinction?

big data analy'cs or

advanced analy'cs ?

predic've analy'cs

or big data predic've analy'cs

?

machine learning ?

modern companies want to know everything – what about banks?

structured data

advanced analy'cs

staying ahead of the connected

clients

predic've analy'cs

machine learning

QUESTION 2:

Why has Big Data failed to deliver on its hype?

B I G D A T A – V I S I O N R U N N I N G A H E A D O F R E A L I T Y ?

BIG DATA HYPE CYCLE

Trigger

Enlightenment

Plateau of Productivity

Peak of Inflated Expectations

Trough of Disillusion

BIG DATA HYPE CYCLE

WHY ARE WE HERE?


BIG DATA HYPE CYCLETHE CHALLENGE OF DEALING WITH THE REALITY OF THE BIG UNSTRUCTURED DATA STACK


In the big data stack

Unstructured

80-90%

2.5+ million words in english

QUESTION 3:

Will Big Data deliver on its hype?

Confluence of trends

Confluence of trends 1. Data explosion - 24m doubling rate


2. Smartphone user behavior – 150x/day



3. Breakthrough technologies: Machines are learning to ”read and understand” unstructured data on a large scale



3. Breakthrough technologies: Machines are learning to ”read and understand” unstructured data on a large scale (!)

Confluence of trends = the necessary conditions for Big Data to deliver - and even ”over-deliver” - on its hype and to transform many industries, including the Investment Industry

Breakthroughs

Understanding the meaning of words…

Big Data Predic5ve Analy5cs in Produc5on and in Distribu5on

Big Data Predic5ve Analy5cs

Magic or OSINT?

The mysteries of monetizing vast streams of unstructured language data…

From data… …to dollars?

MUCH BETTER TEXT ANALYTICS

MUCH BETTER PREDICTIONS

MUCH BETTER SENTIMENTS

Magic or OSINT? wha5smonitor.com

I am special, but not very different…

Watson Personality Profile (IBM) Seman'c Profile (Gavagai)

Use cases from financial industry Distribution of investment products with massive increases in profitability – Task & Question

Common denominators for success

Common denominators for failure

Use cases from financial industry Production of investment products – alpha creation with big data predictive analytics – Task & Question

Common denominators for success

Common denominators for failure

QUESTION 4:

Impact of Big Data on your business?

Huge (transformative)

Imminent (surprising)

Winners & Losers (during the shift – like in all major shifts)

Key take-aways:Big Data has so far failed to deliver on its promise/hype – BUT will over-deliver on its hype: Unsupervised, learning, scalable, systems that understand the Big Data stack of language data, enabling useful sentiment analysis and useful prediction analytics on vast amounts of data

Predictive analytics, profiling, alias matching – use cases show huge potential for disrupting most industries…Expect a transformative shift in competitive landscape across most industries – including banking

Banks – expect margin pressure, use case success stories in analytics & opportunities for incumbents in and outside “non-bank services” – uniquely positioned as distribution partners

Everybody can be a winner in this imminent shift – get involved in advanced data analytics!

Lars Hamberg

Predictive Analytics in The Investment Industry

BIG DATA & ANALYTICS FOR BANKING SUMMIT December 1 & 2, 2015 | New York

Big data & analytics for banking new york lars hamberg

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