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Investment banks and hedge funds were never data-poor. Since the emergence of big data and financial business intelligence, however, the way they use data has changed quite dramatically.
Fremont, CA: Business decisions often have a financial impact, but nothing more than financial trading, where each decision, small or large, has a direct effect on the bottom line, leading to either losses or gains.
It should come as no surprise, then, that business intelligence (BI) solutions are starting to support trading decisions with their potential to process large amounts of structured and unstructured data. This is true for investment banks and larger trading organisations, but also increasingly for smaller financial firms and even individual traders.
Financial Trading Are Now More Data-driven
Investment banks and hedge funds were never data-poor. Since the emergence of big data and financial business intelligence, however, the way they use data has changed quite dramatically.The need to analyse market conditions has increasingly transformed financial trading organisations from data consumers to true data-driven entities, depending on the expertise of available data engineers and scientists, in addition to financial experts and analysts.
Many companies in the financial sector have very specific software requirements and therefore decide to develop big data solutions from the ground up. Data engineers are indispensable to this task.
For smaller companies that cannot afford to hire data engineers, the answer is often found in fintech development outsourcing, a practise that in turn stimulates the demand for financial expertise within software companies.
Data Science in Financial Trading
The demand for data scientists is even higher than for engineering resources. This is partly because, unlike in some other commercial fields, the sheer volume and variety of data is often too complex to serve traders on common dashboards. Instead, data scientists are askedfor identifying subtle data patterns and generate actionable insights using complex algorithms.
The increasing use of big data and business intelligence in financial trading is therefore good news for the technology industry. However, it also contributes to the shortage of analytical professionals, forcing financial services and trading firms to pay more for the resources they hire.
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