Will Big Data bury your bank?
Big Data took the world by storm last year, easily ranking as one of the top buzzwords in the financial services industry.
But there's a fine line between buzzword and buzz kill. The notion has set in that the hype is deflating quickly. A recent FierceFinanceIT post noted Gartner's view that the hype around Big Data has reached its peak and it's likely to plunge into the 'trough of disillusionment."
That said, there are plenty of true believers that would dispute this notion. The reality is that the ultimate conclusion as to whether Big Data is worth the hype or not will be decided bank by bank, and even project by project.
Is it a bust? It likely depends on how your Big Data implementation went. There will failures no doubt. But there will also be some fabulous successes.
Btn gets at this in a recent article, noting that "Large banks are moving forward with projects that leverage not only broader data sets from traditional sources such as transactions and payments records, but also emerging alternative sources such as social networking sites. BNY Mellon and State Street are both in the midst of projects that will leverage new data sourcing to fundamentally change how the banks gather, analyze and deliver information to inform customer-facing and internal functions. As these initiatives move down market to smaller banks out of competitive necessity, there's a greater challenge to recognize what data is actually valuable and what is unnecessary or overkill."
One expert notes that the price of success can be steep. The upfront total costs may well be high, in terms of security, compliance and other factors. But if a bank can nail the implementation, then the ROI will likely justify the project. Still, there have been plenty of challenges to hot new technology implementation. Recall all those ERP nightmares of yesteryear. Hopefully, such nightmares will not recur.
- here's the btn article
Bigging up big data: Why the hype is about to stop