fbpx
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

Big Data Opportunities At Central Banks

Tim Sloane by Tim Sloane
August 7, 2018
in Analysts Coverage
0
Big data

Big data

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

This article in Central Banking is based on a forum that included David Bholat, Senior Manager, Advanced Analytics, Bank of England and Jyry Hokkanen, Head of Statistics, Sveriges Riksbank of Sweden. The discussion makes most Big Data problems pale in comparison, so read the whole article if you want your Big Data problems to appear smaller:

“David Bholat: Yes, unequivocally among both central banks and the broader financial sector. The reason is that you have both supply and demand factors at work. On the supply side there is an accumulation of data – from everyday uses and appliances such as mobile phones or Google searches – which is constantly being created, and therefore the opportunity exists to mine it in some way. Plus, you have the development of very cheap tools to store and analyse that data, and the development of cloud computing, which means organisations can have a lot more data storage capacity. On the other end of the data analytical spectrum are open-source tools like Python and R that come with ready-made machine-learning packages. Again, they’re free, so there’s a huge value proposition there.

On the demand side, both central banks and financial firms see the need to drive operational efficiency, particularly in the private sector among financial firms – to the extent that we are now in a low-interest environment and you can’t drive top-line growth. Margin can therefore only be maintained by cutting operational expenses.

Jyry Hokkanen: I completely agree – there’s so much data on the internet from economic agent activities that can be collected and stored cheaply. The question is: how is this interesting for central banks? It takes a lot of effort to analyse this data because it is so unstructured. We see a lot of interesting research on the unstructured side of big data, but it’s going to be difficult for central banks to use it in a meaningful way. Structured big data is more for central banks to analyse financial institutions and markets, and hopefully monetary policy as well to aid macroeconomic analysis.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

Tags: Big Data
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    Can Banks Acquire Customers With Biometric Payment Cards?

    Can Banks Acquire Customers With Biometric Payment Cards?

    February 26, 2021
    Payments in 2021 and Beyond: Innovating in the New Normal and Why You Should Care about Security

    Payments in 2021 and Beyond: Innovating in the New Normal and Why You Should Care about Security

    February 25, 2021
    Why Pix is the revolution of consumer experience in Brazil

    Why Pix is the Revolution of Consumer Experience in Brazil

    February 24, 2021
    Why Are We Seeing a Fintech App Every Day?

    Why Are We Seeing a Fintech App Every Day?

    February 23, 2021
    Think Big: Understanding How Digital Payments Can Transform Claim Experiences

    Think Big: Understanding How Digital Payments Can Transform Claim Experiences

    February 22, 2021
    Fintech Automation Will Only Increase in 2021

    Fintech Automation Will Only Increase in 2021

    February 19, 2021
    Cryptocurrency Exchange Compliances Pose Challenges for Decision Makers

    Cryptocurrency Exchange Regulations Pose Challenges for Decision Makers

    February 18, 2021
    Record ACH Payment Growth in 2020 to 26.8 Billion Payments

    Record ACH Payment Growth in 2020 to 26.8 Billion Payments

    February 17, 2021

    Connect With Us

    • Advertise With Us
    • About Us
    • Terms of Use
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Events

    © 2021 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result