Quantifi, a provider of risk, analytics and trading solutions, recently hosted a webinar featuring Celent, a research and advisory firm, on ‘Next Generation Risk Technology Powered by Data Science’. Over 180 individuals from across the financial service industry registered for the webinar. Delegates were surveyed to measure industry opinion on the adoption of data science.
There has been a step change in the role that data and technology is playing in risk management and investment decision making. Given the amount of market, historical and transactions data stored in disparate systems, firms are shifting from a focus on collecting data to extracting value from it. Data analysis techniques previously considered as emerging or experimental are now being adopted as mainstream. In particular, firms are now deploying data science to improve risk assessment and business response strategies, and bring more rigour to their operations. Data science is a rapidly evolving and exciting field.
- For 35% of firms, data science is a point of focus. Over half (53%) of firms are currently assessing whether to implement and deploy data science. Whether or not to incorporate data science in an organisation is an important strategic decision that requires careful consideration to avoid sub-par results.
- Data science can be applied to perform various important tasks. Forecasting and decision-making (29%), as well as trading and hedging strategies (29%) rank as the most compelling use cases for leveraging data science.
- Almost half (47%) of the participants see improving data ingestion and data management (MDM) as the most important data science capability. Ensuring data is standardised, validated and made accessible is a pre-requisite to obtaining meaningful results from sophisticated models.
“We are in the midst of a digital transformation and data science tools have become an integral part of this. The current efforts to monitor and track the COVID-19 pandemic has introduced data science to a global audience. It is only natural that this trend will accelerate adoption of these technologies in the business domain, especially in data and analysis intensive sectors like FinTech,” comments Avadhut Naik, Head of Solutions, Quantifi. “At Quantifi we have remained ahead of the competition by continuing to make smart investments in emerging technologies and next-generation approaches including data science,” continues Avadhut.
“As firms ramp up their efforts to deploy data science approaches, they must ensure they understand what they need, their user constituents, and the scope of the tasks to be achieved using these tools,” comment Cubillas Ding, Director of Research, Celent. “Forward-thinking firms are deploying data science to aid risk assessment and business response strategies to mitigate the continuing effects from pandemic, political and economic scenarios,” continues Cubillas.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies.