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Bridging the Gap: How Data Technology Assists the Finance Sector

Picture of Efunkoya Adebisi By  Efunkoya Adebisi  ·  2 minute read

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The realm of finance is a dynamic landscape shaped by various elements such as asset allocation and portfolio diversification. The need for data technology firms in the finance sector has never been more critical. This post explores how data technology firms bridge the gap and serve the finance sector effectively. Understanding these crucial facets is essential for investors seeking to optimize their returns while managing risks effectively.

The Finance Sector and Its Challenges

The finance sector is a complex ecosystem with a myriad of challenges. These include regulatory compliance, risk management, customer experience, and operational efficiency. Data technology firms can provide solutions to these challenges by leveraging advanced technologies such as big data analytics, artificial intelligence (AI), and machine learning (ML).

The Role of Data Technology Firms
Data technology firms plays a significant role in transforming the finance sector. They can provide tools and services that enable financial institutions to harness the power of data. These tools can help in areas such as predictive analytics, customer segmentation, fraud detection, and risk management.

The finance sector faces several data-related challenges.
  1. Navigating Regulation, Fraud Risk, and Sensitive Data: The financial industry deals with large volumes of very sensitive data and is heavily regulated. It also deals with specific challenges, like fraud risks.
  2. Data Silos: The inability to connect data across organizational and department silos is a major business intelligence challenge, particularly in banks where mergers and acquisitions create countless and costly silos of data.
  3. Data Reporting: Big data is revolutionizing how sectors function worldwide and how investors make their reporting decisions. However, managing the large volumes of data reporting coming in almost constantly and making inferences with very low latency requires intense, skillful management.
  4. Data Science Applications: The financial industry’s investment in natural language processing for customer sentiment applications or for gauging market confidence based on the language used in news reports presents unique challenges.
  5. Data Issues: An overwhelming 81% of FinTech's globally have said data issues are their biggest technical challenge. These struggles are split between leveraging data for analytics, machine learning, and artificial intelligence (41%), and connecting to customers’ applications and data systems (40%)
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Solutions we offer to the above data-related challenges.

  1. Navigating Regulation, Fraud Risk, and Sensitive Data: We provide robust data security and privacy solutions, including encryption, anonymization, and secure data storage. 
  2. Data Silos: We help break down data silos by implementing data integration solutions. This can involve creating a data warehouse or a data lake or implementing an API-based architecture for data sharing.
  3. Data Reporting: We provide real-time report solutions that can process and analyze large volumes of data in real-time. This can help investors make informed decisions quickly.
  4. Data Science Applications: We provide services in natural language processing, machine learning, and AI. These can be used for applications such as sentiment analysis or market confidence analysis.
  5. Data Issues: We provide solutions for data management, including data cleaning, data transformation, and data visualization. We also help in connecting to customers’ applications and data systems.

Case Studies

Datagene have successfully served the finance sector severally in various challenges relating to data. For instance, we helped a leading bank improve its risk management by implementing a robust data analytics solution. This resulted in a 20% reduction in operational risks.

Conclusion

Data technology firms have a crucial role to play in the finance sector. By providing innovative solutions, we help financial institutions overcome their challenges and thrive in the digital age. The future of finance is data-driven, and data technology firms are the bridge to that future.

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