Fintech generally refers to technology-driven innovation occurring in the financial services industry.
Big Data
The term Big Data typically refers to datasets that have the following characteristics:
- Volume: The amount of data collected in files, records, and tables is very large, representing many millions, or even billions, of data points.
- Velocity: The speed and frequency with which the data are recorded and transmitted has accelerated. Real-time or near-real-time data have become the norm in many areas.
- Variety: The data are collected from many different sources and in a variety of formats, including structured data (e.g., SQL tables), semistructured data (e.g., HTML code), and unstructured data (e.g., video messages).
Sources of Big Data
Big Data, therefore, encompasses data generated by the following:
- financial markets (e.g., equity, fixed income, futures, options, and other derivatives),
- businesses (e.g., corporate financials, commercial transactions, and credit card purchases),
- governments (e.g., trade, economic, employment, and payroll data),
- individuals (e.g., credit card purchases, product reviews, internet search logs, and social media posts),
- sensors (e.g., satellite imagery, shipping cargo information, and traffic patterns), and, in particular,
- the Internet of Things, or IoT (e.g., data generated by “smart” buildings, where the building is providing a steady stream of information about climate control, energy consumption, security, and other operational details).
The three main sources of alternative data are
- data generated by individuals,
- data generated by business processes, and
- data generated by sensors.
