This translates into the need to create both offensive and defensive business strategies enabled by advanced technology:
• On the offensive side, big data can improve customer segmentation and service; fast data can also improve real-time risk analytics and high-frequency trading.
• On the defensive side, streaming data can revolutionize the accuracy and responsiveness of firms to cybersecurity issues like anti-money laundering (AML), fraud or trader surveillance, reducing false positives and improving reaction to new attack methods.
The same technology can also be used to significantly improve quantitative model creation and back testing, to ultimately increase confidence in trading strategy returns.