We Are At The Big Data Frontier – We’re Going To Need Some Rules
Whether from social media use, video-watching habits, satellite images, traffic flows, or location data from smart devices, companies are increasingly able to use this information to extrapolate trends and capitalise on behaviour patterns.
This has driven change across many industries, but it’s of particular relevance to financial services.
The effects could range from how insurance premiums are calculated to enabling credit providers to exploit behavioural biases and vulnerabilities with inducements to spend.
There will be winners and losers from the fundamental changes to banking, insurance and investment management brought about by the ability to capitalise on big data. More competition, the erosion of traditional concepts like risk-pooling, and the ability of discrete companies to undertake separate parts of transactions all challenge current business models. READ MORE ON: CITY A.M