Data has become the most precious commodity as we enter the fourth industrial revolution powered by Artificial Intelligence. The foundation of this edition of the industrial revolution has been built on the increased automation & use of computers in the third era post-1970s. Technological progress and Financial market development has gone hand in hand over the past few decades.
The increased digitization of financial markets has highlighted the importance of data — 2.5 quintillion bytes of data is being produced every day & the pace is only accelerating with the advent of the Internet of Things (IoT), smart city initiatives, data-driven markets & the complete automation of every sector of the globalized economy. The chart below shows the Big data revenue growth Worldwide. The current projected trajectory clearly points towards exponential growth in the coming years.
It begs the question then — Should the financial institutes become data companies since they have such a wealth of data collected from their customers? I mean it would make more sense for them to provide data analytics rather than following the current model of interest or fee-based income. Let’s dig a little further and explore a few…
