Big Data Vs. Dark Data
Looking at what the buzzword terms really describe for financial data management
In a story last week, I had looked at the use of the term "dark data" and what it means. That is a newer buzzword than one that has been thrown around much more over the past several years, "big data."
Often when "big data" has been used in financial services operations discussions, particularly in data management operations discussions, it really pertains to what is being done with data, such as how firms mine larger amounts of data or how they organize it to get the most insight and value out of it.
So this raises the question of whether "big data" is really even an appropriate term. Increased activity concerning know-your-customer (KYC) data might lead one to think that type of data is rising to the level of "big data," but if compared to something like phone call records, even from just one major cell service provider, KYC data could look small in volume by comparison.
Is there a threshold that KYC data or financial services industry data as a whole needs to cross to truly be "big" and not just "medium," perhaps? Customer details, if cross-referenced with extensive transaction data, could be that "big" in this industry.
Failing that, firms may be better off not getting caught up in "big data" hysteria. It's more effective to work to know exactly what data you do have, how frequently you are getting it and what you are trying to achieve with it—namely, what insights you are trying to generate from it.
In effect, dark data and big data are really about the same thing—data management. Dark data describes knowing where all the meaningful data is and how to aggregate it, while big data infers understanding the complete picture of what data is coming in, especially if the volume of that data is getting larger.
To join a discussion on how "big data" should be defined, visit Inside Reference Data's LinkedIn discussion group.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
The market’s most valuable asset?
DTCC’s Tim Lind writes that using data effectively can provide the intelligence needed to improve investment performance, reduce risk, and inform strategic decision‑making.
Report once: will Esma’s €1bn reforms deliver the full picture?
Critics say plan to merge three reporting regimes will see scant returns, and won’t mesh with single-sided reporting.
Navigating the MarketAxess ICE storm
The Waters Wrap: Most of the discussion surrounding ICE’s MarketAxess buy has focused more on benefits for the front office than the data possibilities.
CTA, UTP to merge into single Consolidated Tape Plan under DataCT
Randall Hopkins, former head of market data at Nasdaq, will join the new company to build and run it.
Managing regulatory transformation through a Dual-Flow Operating Model
Darshan Shah presents an operating model that enables project teams to implement complex regulatory programs, preserve business continuity, reduce risk, and prepare enterprise platforms for regulatory change.
SEC denies 24X’s requested SIP exemption, for now
Start-up exchange cannot begin its overnight market session before the equity data plans’ hours are scheduled to be extended on December 6. But that’s only half of it.
LSEG–MayStreet lawsuit may have precedent in Delaware court
Lawyers for Patrick Flannery argue that a recently settled case in Delaware sets precedent for his ongoing battle with the exchange group.
A tidal wave of token costs threatens landfall
Budgeting for AI was never “easy,” but as financial firms rely more heavily on agents, soaring token usage is forcing them to rethink the economics of modern enterprise AI.