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Financial services sector looks to data in a big way

Paul Newman

April 8, 2013

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In a recent post for The Huffington Post, author and trader Irene Aldridge described the impact of big data on the financial services sector as the new "big bang." Aldridge explains that within the industry, more data and analytics translates to additional transparency. Separate from the days in which tellers and loan officers made decisions based on hunches or personal relationships with customers, they can use fact-driven information as the foundation of their choices. 

According to a FICO survey about spending on analytics, 40 percent of credit risk professionals said the banks they work for plan to invest in big data to assess their credit applicants. 

"There are banks looking at different types of data, and the advent of tools such as Hadoop and others has allowed them to look their unstructured data," said Neill Crossley, principal consultant for analytics for FICO EMEA, as quoted by ComputerWorld. "Some of that data that is captured in interacting with customers in collections or referrals or marketing activity, and can be translated and structured in a way that it can be used within assessment."

However, it's crucial that information about customers be run through data quality programs like address management platforms, to weed out incorrect or outdated content that might impact decisions. 

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