Big data analytics in the financial services industry: Trends, challenges, and future prospects: A review
1 Independent Researcher, Canada.
2 Christfill Global Enterprises, Lagos Nigeria.
3 Independent Consultant, Nigeria.
4 University of Bedfordshire, UK.
5 Independent Researcher, London Ontario, Canada.
6 Fuqua School of Business, Duke University, USA.
Review
International Journal of Science and Technology Research Archive, 2024, 06(01), 147–166.
Article DOI: 10.53771/ijstra.2024.6.1.0036
Publication history:
Received on 13 February 2024; revised on 20 March 2024; accepted on 23 March 2024
Abstract:
This paper provides a comprehensive review of the evolving role of big data analytics within the financial services industry, highlighting current trends, inherent challenges, and future prospects. The objective is to synthesize existing research and practices to understand how big data analytics is transforming financial services, including banking, insurance, and investment sectors. Through a systematic examination of peer-reviewed articles, industry reports, and case studies, the research methodology encompasses both qualitative and quantitative analyses to offer insights into the adoption, implementation, and impact of big data analytics.
Key findings reveal that big data analytics is pivotal in driving innovation, enhancing customer experiences, and improving operational efficiency in financial services. It plays a critical role in risk management, fraud detection, personalized financial advice, and algorithmic trading, among other areas. However, the industry faces significant challenges, including data privacy concerns, regulatory compliance, technological infrastructure requirements, and the need for skilled professionals.
The paper concludes that while big data analytics offers substantial opportunities for the financial services industry, realizing its full potential requires addressing existing challenges through strategic investments in technology, human capital, and data governance. The future prospects of big data analytics in financial services are promising, contingent upon the industry's ability to adapt to rapid technological advancements and evolving regulatory landscapes. This review underscores the importance of continued research and collaboration between industry stakeholders to leverage big data analytics for sustainable growth and competitiveness.
Keywords:
Big Data Analytics; Financial Services Industry; Customer Experience; Regulatory Compliance; Data Privacy; Security Regulations; Technological Advancements; Artificial Intelligence (AI); Blockchain Technology; Risk Management; Personalized Banking; Ethical Considerations; Digital Transformation; Algorithmic Bias; Data Governance; Data Analysis Techniques; Financial Market Trends; Customer Loyalty Programs
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0