The financial services industry is a highly dynamic market characterized by high-volatility, high-risk, and billions of dollars’ worth of value. The companies turn to experts in the financial service industry to manage their portfolio, brokerage a deal or check compliance issues to minimize risks and maximize profits. However, from financial service providers’ perspective, financial management is not a run-of-the-mill job. A small error can cause millions worth of damages and push the company to the brink of bankruptcy. Here we take a look at some of the top challenges that are influencing the financial services industry.
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Managing Artificial Intelligence, Machine Learning, and Quants
AI, machine learning, and quants far exceed human capabilities in processing massive data sets to derive sense out of it for decision-making. But, eventually, such quants are programmed by humans themselves. Algorithms that are not optimized can yield models that can be completely random. For instance, in late 2007, in an event termed “quant-quake,” Goldman Sachs’ QIS division lost millions of dollars due to the inaccuracy of automated investment algorithms.
Blockchain has been touted as the “next big revolution” in the financial industry as it provides robust security and transparency in financial trading. Blockchain promises immense savings opportunity to early adopters regarding robust security, cost-efficiency, and time savings. However, top players in the financial services industry are facing complications regarding governance, standards, and technical issues.
The financial market is a highly regulated market due to its ability to influence the global economy. Such regulations limit the functioning of the financial services industry and also creates uncertainty due to periodic changes in regulations. Vendors in the financial services industry constantly have to cope with regulatory issues pertaining to risk governance, sustainability, compliance, capital management, cross-border standards, data privacy, frauds, and new market entry.
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Today, managers have access to a large stream of data, and decision-making on the basis of gut-feeling, the rule of thumb, and guessworks are largely eliminated with the advent of data analytics.
“Without big data analytics, companies are blind and deaf, wandering out onto the web like a deer on a freeway,” said a leading data analytics expert from Quantzig.
For more than 14 years, we have assisted our clients across the globe with end-to-end data management and analytics services to leverage their data for prudent decision making. Our firm has worked with 120+ clients, including 55+ Fortune 500 companies. At Quantzig, we firmly believe that the capabilities to harness maximum insights from the influx of continuous information around us is what will drive any organization’s competitive readiness and success. Our objective is to bring together the best combination of analysts and consultants to complement our clients with a shared need to discover and build those capabilities and drive continuous business excellence.