Large companies, corporations and financial institutions, including banks, are technologically and financially prepared to develop applications for analyzing large data sets collected in Big Data database systems in the process of managing individual categories of banking, financial, including credit, operational, market and IT systems. The main research issue is the study of potential clients, eg potential borrowers in the field of creditworthiness analysis by analyzing data collected in the Big Data database.
In the Big Data database system, data on potential clients collected from the Internet from entries, comments, posts contained on social media portals can be collected. If the banks analyze the client's creditworthiness based on sensitive, personal and classified data downloaded from social media portals, then the ethics of this type of analytical process should be considered.
This issue of ethics and personal data protection also arises when the insurance company verifies the health of a potential client who submitted an application for life insurance - based on what he writes about himself, he will report his status on social media portals. If the potential client was aware of the fact that he shares personal information with his friends on social media portals only with his friends and the bank, insurance company or other institution uses this secret without using the client's knowledge, then the problem of breaking the basic ethical principles in business arises.
In view of the above, I am asking you the following question: Are you already familiar with the use of Big Data data analysis in the risk management process in corporations and financial institutions?
Please, answer, comments.
I invite you to the discussion.
Dear Colleagues and Friends from RG
The key aspects and determinants of applications of data processing technologies in Big Data database systems are described in the following publications:
Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...
Article The Big Data technologies as an important factor of electron...
Article The Technological Solutions Big Data and the Importance of B...
I invite you to discussion and cooperation.
Thank you very much
Best wishes
Yes. It is fairly extensively being used in Indian Financial Sector, particularly by Private Banks.
It is already proven that the big data of ICT is an integral one in the area of financial services companies nowadays, and will contribute the innovation as well as the companies base IOT in the future. that is why the Financial Industry today shall leverage big data for sustainability and growth.
I have not seen any live examples of actually using the data you have mentioned in credit risk assessment. EU's GDPR would not make it easy to accept for regulators since the privacy intrusion is extremely high if you understand Big Data the way you described.
Fraud detection is another thing but then it is not really on the macro level so I guess not what you're looking for?
I have not seen any. But it will be highly appreciated if a sample is given through the link.
I know it is always advised to use approved sources in empirical research studies.
Thanks
Actually I am interested in your topic and I would like to work with each other (compare between your country and my country " Egypt" ). my thesis was about the impact of risk culture on the capital structure and investment decisions of corporations in Egypt, Cairo university.
I am a professional in dealing with risk analysis and risk management
All the best and successes in your work
Dear Dariusz,
It is still largely at the research and development (R&D) phases.
However, below are two useful references in this regard. I hope it is useful!
1. Applications of Big Data Analytics-Trends, Issues, and Challenges, Mohammed M. Alani, Hissam Tawfi, Mohammed Saeed, Obinna Anya (Editors), Springer, 2018.
2. Financial Signal Processing and Machine Learning, Ali N. Akansu, Sanjeev R. Kulkarni, Dmitry Malioutov (Editors), Wiley, 2016.
Best Regards
Prof. Dr. Mazin A. M. Al Janabi
Full Professor of Finance & Banking and Financial Engineering
Tecnologico de Monterrey, EGADE Business School,
Santa Fe Campus, Mexico City, Mexico.
Apparently, some banks use the technology of processing large data sets in Big Data database systems for the purpose of improving the credit risk management process. Does anyone of you study this issue? Does anyone of you know scientific publications describing this issue?
Dear Colleagues and Friends from RG
The key aspects and determinants of applications of data processing technologies in Big Data database systems are described in the following publications:
Article APPLICATION OF DATA BASE SYSTEMS BIG DATA AND BUSINESS INTEL...
Article The Big Data technologies as an important factor of electron...
Article The Technological Solutions Big Data and the Importance of B...
I invite you to discussion and cooperation.
Thank you very much
Best wishes
Dear Mazin A. M. Al Janabi,
Thank you for participating in the discussion. Thank you for answering the question: Are you already familiar with the use of Big Data data analysis in the risk management process in corporations and financial institutions?
Thank you very much for the publication suggestions on this rapidly evolving issue. Yes, I agree with you that the use of Big Data Analytics in financial risk management processes is still, in many respects, in the research and development (R&D) stage.
Best wishes,
Dariusz Prokopowicz
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