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Financial firms are "drowning in data"

(Image credit: Image Credit: Shutterstock/Sergey Nivens)

Financial businesses around the world are “drowning” in data, but that isn’t stopping them from acquiring new data sources. This is according to a new report by the Aite Group, which polled 682 marketing and risk executives at financial institutions located in the UK, the US, Canada, Hong Kong and India.

The report says that the majority of these businesses are “challenged” by the vast amounts of data available, as well as the fact that this data often comes in silos, instead of data lakes. But – they’re looking to add new sources.

The challenge of data mountains is being tackled through the use of advanced technology, the report continues, namely – artificial intelligence (AI) and machine learning. Over the next two years, the proliferation of AI/ML is expected to continue, with more than two thirds (68 per cent) of UK executives considering integrating it into their platforms.

For Shail Deep, chief product officer at TransUnion in the UK, the move into AI/ML is not surprising, at all.

“With the variety of data sources becoming increasingly diverse, it’s unsurprising that more businesses are adopting machine learning and artificial intelligence as tools to help them improve their analytical processes,” he says.

“It’s only by correctly analysing the data that we can draw meaningful insights. Otherwise businesses face the risk of being saturated with information, yet not reaping the benefits that data can deliver.”

More data also means more staff, and that’s another problem. Skilled staff, especially data experts, is becoming increasingly difficult to find.

Globally, 86 per cent of respondents said they’re having a hard time finding talent. In the UK, 85 per cent cited the same challenge.