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From looking at transaction patterns to market trends. Think of financial data as a giant garden of insight with unimaginable potential for anyone who is willing to stop and smell the roses. The ones who do tap into financial data and gain valuable insight are essentially building a cornerstone for their futures.FINANCIAL DATA: THE NEW STANDARD CURRENCY OF OUR ECONOMY Malcolm X would have been great at financial data analysis. but the juice is well worth the squeeze. www. Amongst many other important things. Stop and smell the roses The problem is that things move so quickly and change so frequently that many businesses and financial institutions simply 1) don’t try or 2) give up after an unsuccessful start.” How can financial data help us prepare for the future? Financial data can benefit anyone from the corner coffee shop all the way up to your friendly neighborhood multi-national conglomerate.com 2 . any business can understand their customers’ behavior and risk to make important decisions with a properly-analyzed pool of financial data. It’s complicated. he encapsulated an incredibly important idea when he said: “The future belongs to those who prepare for it today.ikanow.

We need to keep crunching financial data. We at Ikanow want to give them more strength at the plate. our financial institutions and businesses have been using data to gain insights and to determine risk factors seemingly since the dawn of time. Crunch time is now all the time. That’s why Ikanow is taking the time throughout the next couple of weeks to share a series of posts on financial data analysis here on this blog.ikanow. with many experiencing foreclosure. I think we can all agree that the 2008 mortgage crisis and the 2009 global financial crisis have proven that our existing techniques are not enough to handle our nation’s financial system challenges. Our financial institutions shouldn’t have to suffer because we didn’t crunch enough insight from available data. www. things can and do still go wrong. Yes. However. Who’s on first? Lending money carries risks not only for the borrower but also for the company or individual that is supplying the funds. IT’S GONE! HOW TO HIT A HOME RUN WITH FINANCIAL DATA ANALYTICS These days.com 3 . it seems like every financial institution is operating as if they’re up to bat in the bottom of the ninth inning with two outs. and we need to crunch it the right way. in January 2010 there were over seven million mortgage holders who were at least 30 days behind in their mortgage.Simplify financial data analysis I know what you’re thinking. You only have to look back to the mortgage crisis in the US. While there are existing checks and legislation to try and minimize the risks to both parties.

What we mean by financial data analytics Ikanow sees financial data analytics as the process of collecting. Financial data analytics is not for the faint-hearted. types and amounts of investments and patterns of work and earnings. you can develop a clear picture of risk and reward. It can also include spending patterns and behaviors. Using the right tools and connecting with the right data is essential for hitting one out of the park. By doing this. you can create actionable intelligence for you to guide your business in the right direction. businesses or organizations as possible and structuring that data in order to create actionable intelligence. analyzing and understanding as much information about people.com 4 . It involves accessing data from a range of sources and being able to collate it into a manageable form.ikanow. financial data analysis can help institutions understand their customers and meet www. different spellings of names and where necessary translations. As well as identifying risk. Why you need financial data analytics As long as you know how to collate and read the data that is collected. it is as essential to know how to analyze the data and to know how to apply what you have learned. It can involve checking for name changes. all to ensure that you have access to everything available on an individual or group.Having access to as much financial data as possible when making lending decisions is a must. but.

However. it can be difficult to see why using an external company or software to gather data on clients can help to improve their faith in the financial system. among other things.their individual needs better. by accessing experts in financial data analytics you can make more effective decisions quicker. This. you not only free up additional time to deal with more clients. essential as it remains at an all time low. Edelman. It can also assist in improving customer confidence in the financial industry. This way. other than ensuring that they have provided a high quality service. This is compared to an astounding 83% who have full trust in the technology sector. by using an expert you can save time and money. means that clients get feedback quicker and in the knowledge that their data has been handled fairly and securely by someone who has no vested interest in the outcome.ikanow. Happy clients are likely to reuse your service and recommend you to others. but can also pass on savings to those same clients. www. found that less than half of Americans trust any financial services.com 5 . especially with growing concerns over identity theft. The benefits do not stop there. in turn. a public relations firm in the US. as well. Who’s your clean-up batter? At first glance. As financial data analytics involve using computer software to track digital footprints. people’s faith in technology can be harnessed to return their faith in financial institutions.

collate. to collect. Information is an indispensable element of achieving these aims. Your next swing In a time of continuing financial uncertainty. you can help to improve the service you provide while minimizing the risks to your company and the industry as a whole. You’ll also need the right big data software solution to help you cover all of your bases.com 6 . to minimize risk. and analyze customer data for your company. you need to choose the right experts for you. www.ikanow. to undertake your financial data analytics. focusing on investing on behalf of clients. compared to a multinational. By using an expert in big data. focusing on house loans. you will be dealing with different clients. information by itself is not enough.How to pick your team If you are considering using experts in big data. we want to help you hit one out of the park. You will need to be able to access the information they provide and to do so securely. however. Once gathered it needs to be analyzed and understood in order to be used effectively. It will need to be provided in a form that you can use and easily translate into a decision for your client. If you are a small lending company. financial institutions need to do everything they can. When your company needs a big data solution and you’re up to bat. and improve consumer confidence in the financial sector. uphold financial legislation. You need to choose a company who can address the needs of your organization and the clients that you represent.

com 7 . and what is done with it afterwards. and place of residence may not seem like much on the surface. In much the same way. data can come from a variety of different sources.ikanow. and the average age of a casino patron is older than the average population age of people 21+. or other financial vehicle. much the same way a financial analyst may focus on a single stock. The key to drawing the correlation between the two is to understand both how the data is processed. fund. gender. Each consumer can be thought of as a single entity. An analyst looking to spend their money wisely for the best rate of return could start grouping stocks into categories which the data may show will have a better chance of having a high rate of return. but one of the biggest sources of data comes from rewards programs which can be found in just about every casino in Las Vegas. Las Vegas casinos use many of the same modeling techniques with their data as you would find in a system that featured financial data analytics. www. more men visit casinos than women. a financial data analytics tool can be used in order to get quite a bit of information about a single stock. Some general information gathered from the rewards program like date of birth.FOUR FINANCIAL DATA ANALYSIS LESSONS FROM LAS VEGAS You may not think that a Las Vegas casino would be the place to learn a lesson on data management and processing.2 billion in 2012. it actually starts to paint a picture of which specific customers the casino would most likely see a high rate of return on if they marketed towards them. Casinos use their rewards program as the mechanism to obtain a plethora of information about each customer who signs up for it. According to the American Gaming Association. Know your members For a casino. 1. but it is actually one of the most visible symbols of how data can be efficiently processed and turned into a working business model that recorded gross revenues of $6.

Casinos have figured out that a player who wants to play one specific game will walk to wherever that game is in the casino. a fund or loan manager that can get the data necessary to make a similar call with a particular loan. which will generally carry a high house edge. customers who just want to start playing something right away are more likely to head to what is closest to them. or assigning them a host. On the other hand. will be negated greatly. inherent with any kind of investment or loan. basically like investing in them. giving them free hotel stays. the casino is going to see a positive rate of return an average by giving them something for free. www. or commodity can expect to see a positive return on their investment as well. you walk onto the gaming floor and what is all around you? Most of the time. while scaling back their position in assets that aren’t doing as well. stock. there will be assets that rise and value and assets that drop in value from year to year. since the risk. A good fund manager can use financial data analytics to increase their position in the top performing investments. Look for patterns More detailed knowledge about a patron can be gleaned from watching what they play.2. that casino would make a strong play to get that customer’s return business. you will be surrounded by slot machines. In much the same way. Think about the last time you were in a casino. If a certain individual is spending and losing thousands at a slot machine. 3. Casinos do something very similar with the data they gather dealing with the layout of the facility.ikanow. Armed with this information. Build for success In any portfolio.com 8 .

by analyzing and acting on the data presented to them. accounting for nearly 70% of profits. however. this increase in data has created what is known as “big data. Some of this data is structured. big data has exponentially more data. Your best bet for financial data analysis Building a financial data analysis system can be a difficult task. You can use financial data analytics to do basically the same thing. people looking to sit down and gamble will be doing so at a game where the house edge is anywhere between 2-15%. financial data analytics has gone through a rapid period of transformation. taking some from the weaker assets and assigning it to the stronger ones.” In contrast to data from the 1990s. Adjust your investments accordingly By setting up slot machines. generally table games like blackjack and poker. The casinos have effectively increased their position in the most profitable asset in their “portfolio”. new opportunities have opened up in the financial sector. near the entrance. enrich and harvest data to create actionable intelligence for their financial employers and clients. and some is www.4. by far the most profitable part of any casino. they put their least profitable games. anybody can win big. Financial Data Analytics: Investing in Actionable Intelligence Over the past few years. If the data you gather shows that a proven earner looks to keep increasing in value. or somewhere that is convenient for them. Taking advantage of these opportunities. you can adjust your investments accordingly. but with the right team and the right assets. either in the back. has been a continual challenge. In the world of data science. Ikanow provides an open source analytics platform that allows users to organize.ikanow. At the same time. As a result of this growth and change.com 9 . This explosion in new data has created new processes to analyze that data. The data that was used in the 1990s comprises only a small portion of the data that financial firms use today.

www. In order to gain a competitive advantage in the financial sector. as well as the need to process it quickly. Over the past 10 or 15 years. but companies in the financial industry face greater consequences if they fail to properly handle their data. firms must develop financial data analytics solutions that process this data virtually instantaneously. have the resources to construct and maintain data centers large enough to house all the market. information is only useful if it is processed instantaneously. as well as digital harm. Because almost all trading is done electronically now. big data has different types of information: structured and unstructured. governmental and corporate information they are responsible for. the financial markets have been accelerated. one that lasts no more than a fraction of a second. as well as confidential and non-confidential. In the coming years. Businesses in every sector must deal with these differences. Few financial firms. Processing Big Data All the information in the world is only useful if it can be processed. might have a significant negative impact.com 10 . fines and (in severe cases where criminal intent is shown) imprisonment.unstructured. split-second decisions must be made. Even a momentary delay in a financial data analytics system. Most firms either outsource this entirely or bring in an IT consultant to help create a storage solution for all their financial data. Leaked information can lead to lawsuits. Guarding Big Data By nature. In the financial industry. firms have invested heavily in IT infrastructure to house the growing amount of financial data. businesses will have to continue to invest in storage solutions for financial data. The location where files are stored must be protected from physical harm. all pose unique challenges for financial firms. customer. though. Housing Big Data Over the past decade. The sheer quantity and various types of data.ikanow. as the prevalence of electronic trading has grown.

The interface should be as simple as possible (while still providing all the necessary information). Even the most well-established. large businesses in the financial sector need a scalable solution.ikanow.com 11 . This may be obvious for growing small. it must be live. Users should not have to waste type reformatting their data or searching for the right information. Regarding infrastructure. so that it can process all the data a firm has instantaneously.and mid-sized companies that cannot afford the upfront costs of a large-scale solution. Any big data analytics program that companies in the financial sector rely on must be able to merge structured and unstructured data quickly and in a format that users can easily understand. Information from Oracle. Any financial data analytics software must be built to the highest standards. though. www. financial data analytics is only useful if it has an ultra-low low latency. Essentially. so people can use the software quickly. Any software used should be able to present different types of data quickly and in flexible formats.In today’s world. any financial data analytics solution that a firm decides to implement must be scalable. The analytics software should take care of that work for them. Microsoft Office and XML needs to be complemented by data from social media. The need for instantaneous information also has implications for software. A Scalable Solution Finally. so computers can run the software quickly. firms must have the infrastructure in place to process big data at an extremely high velocity. so users can manipulate it as needed. The programming should be as efficient as possible.

They believed that analysis solutions required focusing on processes and tools. but it is on track to continue growing in the coming years.The solution developed should be scalable.ikanow. aboUT ikanoW Ikanow’s founders created the company in 2011 in response to personal observations while working with the Department of Defense and Intelligence Community regarding the challenges of information unification. It must be able to grow as big data continues to grow. A program should be continually developed. Anything implemented today must be upgradeable for next year. but the ability to grow is especially important for software. and it should be built so that its files will be compatible with future software programs. Hardware will need to be upgraded in the future.com 12 . This field has emerged in the past decade. which will become the primary means for businesses to solve their structured and unstructured document analysis challenges. The founders believe new ways of thought were required to solve complicated data and information. Request quote Request Demo www. specifically open-source tools.

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