Submitted By: Nivedita Banerjee (Depatment of BBA(Batch:2017-2020))


We are living in the era of creating huge data every minute through digital channel and Data are now an integral part in the global economy. The  modern economic structure and activity simply could not take place without Data. So,the companies  now a days need to have a 360 degree view of proper data analysis. When it come to the real usage Big Data – is very much suitable for the companies now a days. Big Data is all for proper analysis,deciding patterns and more importantly it is helpful for making better decision. Big Data enhances the productivity and also increase the chances of growth of the company. The insight that big data brings is not always the largeness of the data,but also the use of proxy data that make decisions on issues for which one may not have the data needed. Industries. The use of Big Data is becoming a crucial way for leading companies to outperform their peers. In most industries, new entrants and established competitors are leveraging data driven strategies for innovating, competing and capturing values. Big Data is helping those industries to grow more and more.There is a strong evidence that big data can play significant role to the benefit of national economics and its citizens. As reported  by NASSCOM and CRISIL Global Research and Analytics,global market will reach $53.4 billion by 2019,whereas the Indian industry in big data will reach $2.3 billion by the end of 2018-19.

What is Big Data?

The most widely definition of Big Data is given by Gartner(2002)

“Big Data is high-volume,high-velocity and/or high variety information assets that demand cost-effective,innovative forms of information processing that enable enhanced insight,decision making and process automation”

The first person to use the term ‘Big Data’ in 2003 for the current phenomenon or explosive growth of Data was Francis.

Big Data consist of 5V’s .They are - 1)Volume 2)Variety 3)Velocity 4) Veracity 5) Value

Volume: Big Data consist of ample volume of Data. This data generated and stored by employees and machine.

Variety: The data can be generated from multiple sources and both structured and unstructured data can be used. Data stores in the forms of PDF,email,image etc. For example Social media is an important source of data generation.

Velocity: This is all about the speed of data generation and frequency of delivery.The continuous flow of data help the company  for decision making and competitive advantage

Veracity: Multiple data sources along with mechanization of data capturing, resulted the authencity of data.

Value: It refers to the purpose ,scenario or business outcome that the analytical solution has to address. It is very important of store the ample amounts of Data.


Application in finance: Financial services, in particular, have widely adopted big data analytics to inform better investment decisions with consistent returns. Big Data today is fast becoming a must have skill for finance professionals. Big Data has changed the Finance department enormously. The main focus of fcinance professionals has  changed from checking of accounts,preparation of budgets and analyzing variances to a level where they produced new financial products to suit the market preference and reach the customer demands.

Some of the interesting applications of big data are:

  • Increase in revenue: Banks and other financial service providers are implementing and design their products as per the demand of potential customers .Using of data analytics help the financial institution to increase their revenues.
  • Optimizing Assets and risk mitigation: Big Data has enabled the banks band several financial institutions to have prior information on default risk,probability of default by the customers,possible interest rate.
  • More Reliable Fraud and crime Detection: As the digitalization takes place in the banking sector there is also a chances for increasing the probability of fraud besides it’s positive application. It is a positive sign that the the finance sector has information at its fingertips that plays a huge role in fighting financial crimes. Banks know a lot about how, where, and when customers access their accounts. They know which devices they use.Implementing Big Data architecture ,these data points create a “signature” to the customers . Through the use of big data analytics, companies can dramatically improve the risk of fraudlent activities.
  • Development of Algorithm Trading: The concept of algorithmic trading is r simple. Computers are programmed to automatically place buy and sell orders based on predetermined conditions. The process of deciding the conditions under which trades are made is another matter altogether. Algorithmic trading is executed with speed and frequency which would not be possible without the help of Big Data. The use of real-time news and social media allows for faster and more accurate trading decisions that fasten the smoothness of the company.
  • Increasing customer commitment and reliability: Serving the right product at the right time to the right customer is the main thing that satisfy the customer most. Financial sectors are using the Big Data analytics to understand the actual need and potentiality of the customer. This also increases the relationship with their customers.
  • Application in Financial Technology: Financial Technology refers to any kind of innovation of financial transactions with the help of technology. Expansion of fintech happened in “lending business”. New age fintech lending companies are crossing that hurdle by accessing extra data through mobile call logs,social media etc.  They are applying big data machine learning algorithm  to extract information on understanding the behavior of the customer.

Conclusions: Big Data plays a very huge role for shaping the dimensions in various industries specially in Finance Sectors. The company now a days have to use the Big Data effectively and efficiently in order to sustain itself in this competitive world.  The Companies are coming out with newer products,trading strategies,innovative methodsetc. They have also used the automation process in order to reduce the human emotion. Big Data is helping the companies for better decision making and it also helps the company to always hold a strong position in the growing markets by using technology,machine learning techniques and analytics techniques.


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