Lesson 1 of 7 · 12 min
Fintech and the four Vs of Big Data
Fintech gives analysts two things, far more data and smarter tools to read it, and Big Data is defined by its volume, velocity and variety, plus veracity once it is used to predict.
In short
- Fintech here means technological innovation in the design and delivery of financial products and services; it has moved from automating routine tasks, to rule-based execution, to machine-learning decision making.
- Two fintech areas matter most for quant analysis: the analysis of large datasets (traditional plus alternative data) and new analytical tools based on artificial intelligence.
- Volume: millions to billions of data points, now measured in terabytes and petabytes.
- Velocity: data are recorded and sent in real time or near real time, which is now the norm.
- Variety: many sources and formats: structured, semi-structured and unstructured.
- Veracity: when data are used for inference or prediction, the credibility and reliability of each source becomes critical.
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