Big Data refers to vast amounts of data that are too large, too complex, too weakly structured and/or too short-lived to be processed and evaluated using conventional or manual methods.
However, Big Data is more than just a vast collection of data. Big Data is widely used as a collective term for technologies for processing and evaluating huge amounts of data. In this regard, Big Data falls into the category of information and communication technologies (ICT), which are bringing about a new age of digital communication and social and economic interaction.
The quantity of data increases exponentially.
Nowadays, the entire volume of data recorded worldwide up to the year 2000 (two exabytes = two trillion bytes = 2x10^18 bytes) is being generated on a single day. According to Statista, by 2025, global data volumes are expected to reach 180 zettabytes (10^21 bytes). Capturing and storing data as such, however, does not yet yield any added value. Only when the data is intelligently combined and evaluated can meaningful conclusions be drawn that enable performance improvements, cost reductions, greater resource efficiency and stronger system security.
Financial companies and service providers have been aggregating gigantic amounts of data for years.
The volume, depth and complexity of the flood of data resulting from increasing connectivity is rising rapidly. However, the resulting data is mostly unstructured and highly dispersed.
One of the main reasons for this, in addition to compliance (including DSGVO and MiFID II), is that the data cannot possibly be recorded and analyzed manually by humans. Orchestrating an effective and networked interplay of usable data from this raw data (i.e., being able to understand, organize, and access information quickly and comprehensively) is becoming the core challenge for financial service providers.
Only Big Data, data analytics and artificial intelligence make it possible to recognize patterns, understand customer needs, tap new insights for day-to-day business and develop innovative products in this context.