Organizations across industries are under growing pressure to do more with their data. As a result, we’re seeing the rapid adoption of machine learning and artificial intelligence (AI) by businesses striving to remain competitive in today’s increasingly data-driven enterprise.
In the financial services industry, firms that can extract value from their data have a significant competitive edge. Seventy percent of firms report that Big Data is critically important – a number that’s up sharply from 21 percent in 2012, according to research last year from the consulting firm NewVantage Partners. Advanced analytics and predictive models can improve a wide range of business initiatives – from calculating market trends to freeing-up employees, so they can focus on more strategic tasks.
Results from the latest NewVantage Partners annual survey are in – and this year, the theme is “How Big Data and AI are driving business innovation.” Following are key findings from the Big Data Executive Survey 2018 report:
A data-driven culture is everyone’s goal – Among 2018 survey participants, a nearly unanimous 98 percent of executives indicate that their firm aspires to a data-driven culture, up from 85 percent in the 2017 survey.
Companies derive value from Big Data and AI - Of the 97 percent of respondents investing in these types of projects, 73 percent report having already received measurable value from these initiatives.
Fear of disruption from fintech firms – Eighty percent of executives agree that cultural challenges (people + process) represent the greatest barrier to becoming data-driven. Almost four in five respondents said they feared disruption or displacement from firms like those in the “fintech” sector or firms specializing in big data.
The financial services industry is in the midst of a digital transformation. Banks and large financial institutions are actively working to shift legacy technology to cloud-based architecture, they remain hamstrung by fear when it comes to shifting to a data-driven culture. On the other hand, fintech companies and startups are often founded in a data-driven culture. According to a recent Forbes article by Randy Bean, CEO of NewVantage Partners:
"FinTech startups have the advantage of not being encumbered by legacy systems and processes. As a result, FinTech firms are generally able to move faster and develop solutions that compete directly with traditional methods of delivering financial services."
"What does the future hold for FinTech? AI, machine learning, and Big Data are becoming central to FinTech solutions as firms look to new areas of financial services innovation."
Agile, fintech companies can help large financial institutions embrace a data-driven culture and accelerate innovation. In his article, Bean cites Elsen as a good example of a fintech company that has found opportunities to innovate. In a data-driven economy, speed is king. Banks and large financial firms that embrace fintech solutions will have a far easier time unlocking the power of Big Data than those that remain frozen by fear.
Click here to read “How FinTech Initiatives Are Driving Financial Services Innovation” via Forbes: https://www.forbes.com/sites/ciocentral/2018/07/10/how-fintech-initiatives-are-driving-financial-services-innovation/#7152940c54fa.
You can view the full 2018 report from NewVantage Partners at http://newvantage.com/wp-content/uploads/2018/02/Big-Data-Executive-Survey-2018-Findings.pdf.
Visit the Elsen blog at https://elsen.co/blog to learn more about Elsen, and read industry perspectives from CEO Zac Sheffer and other members of the Elsen leadership team.