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

Trigger

Enlightenment

Plateau of Productivity

Peak of Inflated Expectations

Trough of Disillusion

BIG DATA HYPE CYCLE

WHY ARE WE HERE?

Trough of Disillusion

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

Trough of Disillusion

In the big data stack

Unstructured

80-90%

2.5+  million  words  in  english    

QUESTION 3:

Will Big Data deliver on its hype?  

Yes!  

Why?  

Confluence of trends  

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

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

2. Smartphone user behavior – 150x/day

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

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 (!)

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?  

     Magic  or  OSINT?  

Big  Data  Predic5ve  Analy5cs  in  Produc5on  and  in  Distribu5on  

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  

Big  Data  Predic5ve  Analy5cs  in  Produc5on  and  in  Distribu5on  

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