Title: application of big data in finance

Author: pratiksha chandane

Abstract:
Artificial intelligence in finance is transforming the way individuals interact
with money. Artificial intelligence is helping the financial industries to
streamline and optimize processes ranging from credit decisions to quantitative
trading and financial risk management. This paper provides a deep knowledge
about how the structured and unstructured data known as big data used by
artificial intelligence helps the finance sector to grow successfully and also
provides reason to use it.

Keywords: finance, structured data, unstructured data, artificial intelligence,

bank, big data.

CHAPTER-1-INTRODUCTION
Data is lifeblood of artificial intelligence. An artificial intelligence system needs
to learn from data in order to be able to fulfil its function. Here artificial
intelligence is useless without data and data is also useless without artificial
intelligence. In this paper we are going to study two types of big data

 Structured data
 Unstructured data

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1.1 structured data: structured data is most often categorized quantitative data,
and it’s the type of data mostly used in work. Structured data usually resides
in relational database (RDBMS). Example of structured data includes
names, dates, address, credit card numbers, stock information, geolocation
and more.
1.2 Unstructured data: unstructured data is essentially everything else.
Unstructured data has internal structure but is not structured through pre-
defined data models or it may be textual or non textual and human or
machine – generated. It may be stored within a non relational database like
NOSQL. Typical human generated unstructured data includes text files,
email, social media, website, mobile data etc typical machine-generated
unstructured data includes satellite imagery, scientific data, digital
survelliance, sensor data.

1.3 Characteristic:
 Variety of Big Data refers to structured, unstructured data that is
gathered from multiple sources. While in the past, data could only be
collected from spreadsheets and databases, today data comes in an array
of forms such as emails, PDFs, photos, videos, audios, SM posts, and so
much more. Variety is one of the important characteristics of big data.
 Velocity essentially refers to the speed at which data is being created in
real-time. In a broader prospect, it comprises the rate of change, linking
of incoming data sets at varying speeds, and activity bursts.
 Volume is one of the characteristics of big data. We already know that
Big Data indicates huge ‘volumes’ of data that is being generated on a
daily basis from various sources like social media platforms, business
processes, machines, networks, human interactions, etc. Such a large
amount of data are stored in data warehouses.

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1.4 purpose of big data analysis:
Big data analysis has many purposes and goals, which can be summarized
under three headings:

 Business: big data provide the ability to pursue new business models or

to achieve a significant competitive advantage on the company’s
traditional business.
 Technology: the size and complexity of the data require appropriate
technology in order to derive value from it. In Part II and Part III of the
book we will talk about available technologies in depth.
 Finance: several cases in which big data was used show that it brings
economic advantages to the companies that have adopted such solutions.
It is necessary, however, to assess in advance the costs of implementing
these solutions. An important element to consider is the availability, on
the one hand of technologies which use low-cost hardware, and on the
other of cloud solutions which allow to minimize the initial investment.
We will address these issues in the section about big data ROI.

1.5 Benefits of big data:

 Data accumulation from multiple sources, including the Internet, social
media platforms, online shopping sites, company databases, external
third-party sources, etc.
 Real-time forecasting and monitoring of business as well as the
market. 
 Identify crucial points hidden within large datasets to influence
business decisions. 
 Promptly mitigate risks by optimizing complex decisions for
unforeseen events and potential threats.
 Identify issues in systems and business processes in real-time. 

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  Unlock the true potential of data-driven marketing. 
 Dig in customer data to create tailor-made products, services, offers,
discounts, etc.
 Facilitate speedy delivery of products/services that meet and exceed
client expectations.
 Diversify revenue streams to boost company profits and ROI.  
 Respond to customer requests, grievances, and queries in real-time.
 Foster innovation of new business strategies, products, and services.
1.5 Advantages of big data:
 Cost optimization: One of the most significant benefits of Big Data
tools like Hadoop and Spark is that these offer cost advantages to
businesses when it comes to storing, processing, and analysing large
amounts of data. Not just that, big data tools can also identify efficient
and cost-savvy ways of doing business.
 Operational efficiency:  Big Data tools can improve operational
efficiency by leaps and bounds. By interacting with customers/clients
and gaining their valuable feedback, Big Data tools can amass large
amounts of useful customer data. This data can then be analysed and
interpreted to extract meaningful patterns hidden within (customer
taste and preferences, pain points, buying behavior, etc.), which
allows companies to create personalized products/services. 
 Foster competitive pricing: Big Data Analytics facilitates real-time
monitoring of the market and your competitors. You can not only
keep track of the past actions of your competitors but also see what
strategies they are adopting now.
 Boost sales and retails customer:  Big Data aims to gather and
analyse vast volumes of customer data. The digital footprints that
customers leave behind reveal a great deal about their preferences,
needs, buying behavior, and much more. This customer data offers

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 the scope to design tailor-made products and services to cater to the
specific needs of individual customer segments. The higher the
personalization quotient of a business, the more it will attract
customers. Naturally, this will boost sales considerably. 
 Innovate: Big Data Analytics and tools can dig into vast datasets to
extract valuable insights, which can be transformed into actionable
business strategies and decisions. These insights are the key to
innovation. 
The insights you gain can be used to tweak business.
 Focus on local environment : This is particularly relevant for
small businesses that cater to the local market and its customers.
Even if your business functions within a constrained setting, it is
essential to understand your competitors, what they are offering,
and the customers.  
 Control and monitor online reputation: As an increasing number
of businesses are shifting towards the online domain, it has become
increasingly crucial for companies to check, monitor, and improve
their online reputation. After all, what customers are saying about
you on various online and social media platforms can affect how
your potential customers will view your brand. 
1.6 areas that big data impacting:
 retailers: Loyalty cards and company credit cards are not issued just as a
courtesy to customers. The data captured from the cards is processed by a
big data platform, providing retailers with information that allows them to
make better decisions about pricing, inventory control and customer
incentives.
 Finance sector: The banking industry has embraced big data whole-
heartedly. Fraud detection is one reason. A customer’s history and
transaction data can be used to detect any out-of-the-ordinary activity.

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  Health care: One obvious area big data will help is in handling electronic
health record safely and accurately across medical organizations. Having
accurate records will provide patients with better service and decrease
errors. The health care field, for obvious reasons, is adapting big data at a
slower pace in order to conform to government regulations regarding
patient confidentiality.
 Social media: Big data’s ability to analyse, in near real time, social
network posts (Twitter and Facebook, for example) allows companies,
brands and organizations a unique opportunity to determine
customer/member loyalty and how customers feel about products and/or
service.
 Marketing: No doubt about it, marketers love big data. The more data
they have, the better they feel. What big data offers marketers that they
did not have before is the ability to mine the tiniest detail about customer
behavior towards their products. Marketing firm 360i says that big data
has been helpful in:

 Retaining and upselling existing customers

 Identifying new customers
 Revealing new marketing opportunities
 Driving more profitable advertising

1.7 big data impact on finance and future prospects:

The role of big data in finance industry

 risk modelling and management: Adopting Big Data analytics helps

companies build risk models and propose methods to mitigate them.
Trapped inside the data are potential risks that may increase the cost of
doing business and financial institutions can uncover such risks through

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 analysis of market trends, social media sentiment analysis, and spending
patterns.
 Consumer analytics: Consumer analytics entails the analysis of
spending patterns, investments, shopping trends, personal philosophies,
and other backgrounds that are relevant to their finances. This helps in
targeting customers with useful solutions and is a powerful lead
generation strategy.
 Influence strategy: Big Data tremendously influences company policy
and strategy. This is an emerging trend being experienced across the
financial industry. Leveraging the improved forecasting using Big Data
tools, companies can improve their predictions and incorporate them into
the overall strategy.
 Digital transformation: Digital transformation is one of the most
significant changes in the financial industry and is largely powered by
data. By unlocking new insights from analysis, companies better
understand their products, usage patterns, and missing links. They can
embark on closing those links with new digital products or services to
retain their existing customers.
 Optimize operational efficiency: Another important influence of big
data on modern finance is the improvement of operational efficiency. For
instance, using Big Data, analysis of all compliance requirements from
the government for banks can be automated and scaled to all customers.

Future prospects

 Highly specialized analytics: Presently, the application of analytics in

finance is still quite generalized. However, the next generation of
analytics will offer cutting edge insights for a smaller domain targeting
specific industries. This will mark the rise of highly personalized and

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 multichannel banking. Such capability will include GIS data, business
data, movement, process, and more. Analytics in finance will advance
enough to provide industry-reliable insights and products for e-
commerce, manufacturing, process management, learning solutions
among others.
 Predictive analytics and automation: The concept of predictive
analytics is relatively young but as it matures, specialized analytics will
become a norm and reliable enough to make accurate predictions based
on Big Data analytics. At this stage, much of the analytics processes
will be automated using machine learning and sophisticated AI.
Competition in finance will soon depend on how prepared a company is
to take up such advanced tools and use them to serve their customers.
 New careers in finance: new technologies call for new expertise and
industry requirements. It is likely that in the near future, new careers in
predictive analytics and product analytics will emerge with experts able
to use Big Data for future predictions and make product
recommendations. It is possible that data science professionals will
specialize in domains such as business experts, consumer tech,
manufacturing, etc.
 Customer segmentation: Financial institutions serve customers with
diverse requirements and behavior. Customer segmentation will
transform the bank from a general-purpose institution to the one that
places its customers in groups and targets them as such. Already, Big
Data is helping institutions analyse customer behavior and spending
patterns. In the future, the dynamic segmentation of customers will
advance even further to include specialized products backed with AI.
 Uncharted territory: As deep learning and AI become more
operationalized and sophisticated, we will see the industry head into
new directions from the current trends. AI-only banking apps might be

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one of such changes. It could also mean ditching the UI that we are
accustomed to for a simpler, intuitive, and flexible interface powered
by bots to deliver personalized feel unique to each us.

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 CHAPTER 2- RESEARCH METHODOLOGY
Research methodology is the specific procedure or technique used to identify,
select, process, and analyse information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study’s overall
validity and reliability.

2.1 objective of the study:

 To investigate the impact of big data on the finance sector

 To analyse how artificial intelligence impacts the finance in today’s
world.

2.2 hypothesis:

H1; fraud detection can be happened with the help of big data

H2; competition can be faced confidently by using big data

H3; there is a significant relationship between big data and stock market

H4; there is a strong impact of big data on global growth of business

H5; big data is useful in achieving customer satisfaction

H6; big data impacts finance sector in innovating new services

H7; risk of bad investor and payer gets impacted by big data.

H8; big data has huge impact on smooth functioning of regulatory

compliances.

2.3 research design and sample size:

type of research used: descriptive research.

Sample design:

1) Population:

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 A. Element: big data in finance sector
B. Sampling unit: students from class, finance persons, friends,
relatives
C. Extended: Maharashtra state.
D. Time: 10/02/2020 to 1/10/2020

2) Sample size: 100 students, finance persons, friends, relatives

Demographic characteristics of the sample

Variables:

1. Gender
2. Age
3. Qualification
4. Experience
5. Source of income
6. Status of respondent

2.4 sources of information

1. primary data collection through questionnaire

2. secondary data through internet, journal and article, books and internet
experts etc.

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CHAPTER-3: REVIEW OF LITERATURE

 (Moody A. amakode 2015) : big data has made a significant impact in

many sectors of the global economies like health care, manufacturing and
retail. As per the report by researcher moz(2014) apart from the
government section, the financial services section has to more to gain
from the available information of big data. The technology will not only
contribute to financial instituitions maximize the value of data but will

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 also lead them to gain competitive advantages, minimize costs, convert
challenges to opportunities and face the risk more confidently.
 (sunni hafiz olaswasola 2015) : the technical key to useful
implementation of big data and digitization of business process is the
capability of organization to collect and process all the required data and
inject this big data into its business process in current time or more
accurately in right time. If the banking industry will implement the big
data effectively will increase the efficiency of the banking sector.
 (taruna seth and Vipin Chaudhary 2015) : the financial sector has
always been driven from data availability. Today the big data is prevalent
at various levels of this sector, ranging from the financial services
industry to capital markets. The availability of big data in this section has
opened up new avenues for innovation in this field and has offered
immense opportunities for global growth and sustainability.
 (pingale murali manish , sheetal kesale , anit dani simon) : the big data
analytics and banking uses information as services .big data analytics helps
in the full exploitation of resources if used to its full, has the potential to
anticipate unforeseen benefits and insight information into the existing banks
and the services provided .

 (vadlamani Ravi 2017) : The big data analytics is changing the market of
financial services industry. In the banking industry, large amount of system-
generated and customer-generated data provides growth of the business.
There are many different ways that big data analytics can bring a new face
to the banking industry. Various forms of analytics discussed in the paper
indeed can benefit immensely from the big data available in the related
problems including the new technologies IoT, Blockchain, Robotics,
Chatbots and data lake.

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 ( abhinav Kathuria 2016 ) : Nowadays, banking sector is generating huge
amount of data. Previously, most bannks did not have utilized this data.
However, in today’s era, banks have started using this data to reach their
main objectives of marketing. By using this big data, many secrets can be
revealed like money movements, thefts, disaster.

 ( Sophie cockroft 2018 ): The accounting and finance data is a

combination of enterprise data which includes broader operational and
transactional data that can be used for the propose of analysis and
forecasting. From the literature, there is the broader view of big data
which includes new types of internal and external data much of which is
unstructured but yields new insights into business performance, risks and
opportunities. This global view of data encompasses social media data
which is increasingly gathered as part of online strategy of companies.
 (lipika dev, ishan verma 2018 ) : The advantages of linking data from a
multiple of sources are many .while business figures can clearly indicate
how the business performed, they can hardly explain why it performed
so. Often times, the attributable causes can be known from the big data
available to the organization.
 ( Sophie cockroft 2016 ) : Fraud prevention is one of the important
feature of big data that crosses disciplinary boundaries, particularly
between accounting and finance. Accounting and Finance. From and
Auditing perspective, Drew (2013) has reported on a poll of Accounting
professionals who indicated increased concerns for security risks the
proliferation of mobile devices and therefore the mass movement of
confidential information to the cloud. A number of researchers have
explored the use of big data for fraud protection.

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  ( raef Lawson 2019) : In order to stay relevant, finance professionals
must take advantage by creating opportunities for their business through
the big data available to them. It includes addressing the areas of data
governance, the use of data to gain insight into business latest happening
and an organization’s operations, and the use of Big Data to enhance
organizational risk management.

 ( kinyajui Mungai, amoeba bayat 2018) : finance makes available of

production, technology in the financial sector enhances the speed of
accessing and transferring finances, that helps facilitating more
production. Accepting new technologies is therefore important for the
success of any financial industry in the fourth industrial revolution.
Technologies have became pervasive digital disruptors which have
fundamentally changed the business models of finance and value
propositions of firms across the financial industry in whole world.

 ( kazim hussain, Elsa prioto) : The addition of big data in financial

services can bring many advantages to financial institutions: enhanced
levels of customer insight, engagement, and experience through the
digitization of financial products and services as well with the increasing
trend of customers interacting with brands or organizations in the digital
world; enhanced fraud detection and prevention capabilities through the use
of big data in financial sector it is now possible to use larger and more
useful datasets to identify trends that indicate fraud; and enhanced market
trading analysis, where trading strategies which make the use of
sophisticated computer algorithms to rapidly trade in financial markets.
 ( Fei peng Wang 2018 ) : Finance is at the core of modern economic
operations, and financial viability determines the quality and potential of the
overall economic growth . Financial dynamism depends on the ability of the

15
 financial system to accept new concepts and apply new technologies.
However, with the proper application and popularization of Internet
technology in the financial field, the traditional finance has been rapidly
transformed from the economic field into a new industry through internet
finance.

 ( hossein Hassani, xu Huan, and Emmanuel Silva 2018 ) : Banking as a

data intensive subject has been progressing continuously under the
promoting influences of the era of big data. Exploring the advanced big data
analytic tools like Data Mining (DM) techniques is key for the betterment
the banking sector, which helps to reveal valuable information from the
overwhelming volume of data and achieve better strategic management and
customer satisfaction. In order to provide sound direction for the future
research and development, a comprehensive and most up to date review of
the current research status of DM(data mining) in banking will be extremely
beneficial.
 (M.D jaweed and j jebathangam ) :in this paper they have shown the
possibility that big data Hadoop and qlikview can be used for finance sector.
This approach will be very useful in the section of business intelligence
where company has to act upon the past performance and data.
 ( zhihao peng 2019 ) : big data analytics can be used primarily in many
sectors for accurate prediction and analysis of the huge amount data sets.
They allow the discoveryof important information from large data sets , in
this paper they have shown various tools to earn profit through investment.

16
 ( Helena forest and Evelyn foo) : financial industry is one of the most data-
driven industries . At the end of 2012, it was found that financial and
securities organisations were managing 3.8 petabytes of data per firm. Data
sets have grown immensely in terms of size, type and complexity, and it is
difficult to work with using traditional database management tools. Many
large financial and banking industries .are reaching the upper limits of their
legacy systems and are now using latest analytics and framework for their
organizations to work more effectively.
 ( utkarsh srivastava, santosh gopalkrishnan 2015 ): The big data
revolution that is happening in 21st century has found a resonance with
banking firms, considering the valuable data they’ve been loading since
many decades. This data has unlocked secrets of money movements, helped
prevent major disasters and thefts and understand changing consumer
behaviour. Banks take the most benefits from big data available to their use
as they now can extract good information quickly and easily from their data
and convert it into meaningful benefits for themselves and their customers.
Banks internationally has started to utilize the power of big data in order to
derive utility across various area of their functioning, ranging from sentiment
analysis of customer, product selling, regulatory compliances management,
reputational risk management, financial crime management and much more
which will help them to grow globally.

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CHAPTER-4: DATA ANALYSIS, INTERPRETATION

AND PRESENTATION

Data analysis is an analysis of inspecting, cleansing, transferring and modelling

data with the goals of discovering the information, and also informing
conclusions, and supporting the decision making. Data analysis is the process of
evaluating and using logical techniques to describe and illustrate the data. data
analysis helps to ensure data integrity in order to find out an appropriate
analysis of research findings.

4.1 analysis of ANOVA

Anova: Single Factor

SUMMARY
Varianc
Groups Count Sum Average e
0.69046
V1 103 379 3.67961165 3
4.18446601 0.64210
V2 103 431 9 9
3.85436893
V3 103 397 2 0.96878
3.82524271 1.00837
V4 103 394 8 6
3.81553398 1.23034
V5 103 393 1 5
V6 103 410 3.98058252 1.01922

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 4 7
3.79611650 1.00704
V7 103 391 5 4
3.84466019 1.03445
V8 103 396 4 7
0.90196
V9 103 412 4 1

ANOVA
Source of
Variation SS df MS F P-value F crit
Between 17.82524 2.35845 0.0163297 1.948472
Groups 3 8 2.22815534 7 4 4
867.2815 0.94475114
Within Groups 5 918 7

Total 885.1068 926        

Interpretation: from the above one factor anova’s observation it is seen that
there is significant impact of above variable on the study thus we accept
following hypothesis

H1; fraud detection can be happened with the help of big data

H2; competition can be faced confidently by using big data

H3; there is a significant relationship between big data and stock market

H4; there is a strong impact of big data on global growth of business

H5; big data is useful in achieving customer satisfaction

H6; big data impacts finance sector in innovating new services

H7; risk of bad investor and payer gets impacted by big data.

H8; big data has huge impact on smooth functioning of regulatory

compliances.

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4.2 analysis of regression:

Regression Statistics
Multiple R 0.4776024
R Square 0.228104
Adjusted R
Square 0.1534044
Standard Error 0.4347938
Observations 103

ANOVA
Significance
  df SS MS F F
0.57727302
Regression 9 5.1954572 1 3.05362 0.003019975
0.18904561
Residual 93 17.581242 1
Total 102 22.776699      

Coefficient Standard Lower

  s Error t Stat P-value Lower 95% Upper 95% 95.0%
1.24027351 -
Intercept 0.389889 0.3143572 6 0.21799 0.234362222 1.01414015 -0.234362
-
V1 -0.084196 0.0614352 -1.37049136 0.17383 0.206194414 0.0378017 -0.206194
0.78146449 -
V2 0.0577285 0.0738722 4 0.43651 0.088966999 0.20442394 -0.088967
0.50759845 -
V3 0.0244007 0.0480709 3 0.61294 0.071058519 0.11985992 -0.071059
0.58248627 -
V4 0.0285975 0.0490955 5 0.56165 0.068896523 0.12609147 -0.068897
1.62624399 -
V5 0.0786782 0.0483803 5 0.10728 0.017395516 0.17475187 -0.017396
0.21366140 -
V6 0.0099633 0.0466312 5 0.83128 0.082637074 0.10256366 -0.082637
1.82413380 -
V7 0.0949462 0.05205 6 0.07134 0.008414827 0.19830731 -0.008415
0.51367795 -
V8 0.0255232 0.0496872 3 0.6087 0.073145775 0.12419226 -0.073146

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 1.68135030 -
V9 0.0866013 0.051507 6 0.09605 0.015681386 0.18888403 -0.015681

Interpretation : from the above study it is seen that gender doesn’t have much
significance impact on the variables. Thus we reject following hypothesis

H1; fraud detection can be happened with the help of big data

H2; competition can be faced confidently by using big data

H3; there is a significant relationship between big data and stock market

H4; there is a strong impact of big data on global growth of business

H5; big data is useful in achieving customer satisfaction

H6; big data impacts finance sector in innovating new services

H7; risk of bad investor and payer gets impacted by big data.

H8; big data has huge impact on smooth functioning of regulatory

compliances.

4.3 analysis of descriptive statistics

V1   V2   V3  

3.67961 4.18446 3.85436

Mean 2 Mean 6 Mean 9
0.08187 0.07895 0.09698
Standard Error 5 Standard Error 6 Standard Error 3
Median 4 Median 4 Median 4
Mode 4 Mode 4 Mode 4
0.83094 0.80131 0.98426
Standard Deviation 1 Standard Deviation 7 Standard Deviation 6
0.69046 0.64210
Sample Variance 3 Sample Variance 9 Sample Variance 0.96878
Kurtosis 0.61074 Kurtosis 1.73346 Kurtosis 0.75490

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 6 3 5
Skewness -0.80022 Skewness -1.04718 Skewness -0.9595
Range 4 Range 4 Range 4
Minimum 1 Minimum 1 Minimum 1
Maximum 5 Maximum 5 Maximum 5
Sum 379 Sum 431 Sum 397
Count 103 Count 103 Count 103
Largest(1) 5 Largest(1) 5 Largest(1) 5
Smallest(1) 1 Smallest(1) 1 Smallest(1) 1
Confidence 0.16239 Confidence 0.15660 Confidence 0.19236
Level(95.0%) 9 Level(95.0%) 9 Level(95.0%) 5

V4   V5   V6  

3.82524 3.98058252
Mean 3 Mean 3.815534 Mean 4
0.09894 0.109293 0.09947566
Standard Error 5 Standard Error 6 Standard Error 9
Median 4 Median 4 Median 4
Mode 4 Mode 4 Mode 4
1.00417 1.00956778
Standard Deviation 9 Standard Deviation 1.109209 Standard Deviation 3
1.00837 1.230344 1.01922710
Sample Variance 6 Sample Variance 6 Sample Variance 8
- 0.63476860
Kurtosis -0.0117 Kurtosis 0.327019 Kurtosis 9
-
- 0.95166427
Skewness 0.70624 Skewness -0.72459 Skewness 5
Range 4 Range 4 Range 4
Minimum 1 Minimum 1 Minimum 1
Maximum 5 Maximum 5 Maximum 5
Sum 394 Sum 393 Sum 410
Count 103 Count 103 Count 103
Largest(1) 5 Largest(1) 5 Largest(1) 5
Smallest(1) 1 Smallest(1) 1 Smallest(1) 1
Confidence 0.19625 Confidence 0.216783 Confidence 0.19730951
Level(95.0%) 6 Level(95.0%) 4 Level(95.0%) 9

V7   V8   V9  

Mean 3.79611650 Mean 3.844660 Mean 4

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 5 2
0.09887933 0.100216 0.09357831
Standard Error 2 Standard Error 1 Standard Error 4
Median 4 Median 4 Median 4
Mode 4 Mode 4 Mode 4
Standard 1.00351561 Standard 1.017082 Standard
Deviation 7 Deviation 3 Deviation 0.94971616
1.00704359 1.034456 0.90196078
Sample Variance 4 Sample Variance 5 Sample Variance 4
-
0.24266442 1.027377 1.45983192
Kurtosis 5 Kurtosis 2 Kurtosis 6
- -
0.52730825 - 1.12048340
Skewness 2 Skewness 0.992482 Skewness 5
Range 4 Range 4 Range 4
Minimum 1 Minimum 1 Minimum 1
Maximum 5 Maximum 5 Maximum 5
Sum 391 Sum 396 Sum 412
Count 103 Count 103 Count 103
Largest(1) 5 Largest(1) 5 Largest(1) 5
Smallest(1) 1 Smallest(1) 1 Smallest(1) 1
Confidence 0.19612668 Confidence 0.198778 Confidence 0.18561214
Level(95.0%) 6 Level(95.0%) 2 Level(95.0%) 2

Interpretation: from the above analysis we found that the all above studied
variable have positive effect on big data used in finance sector, if used perfectly
and it is assumed the success of finance sector is dependant on management of
proper use of big data.

4.4 analysis of covariance:

  V1 V2 V3 V4 V5 V6 V7 V8 V9
0.68375
V1 9
0.30181 0.63587
V2 9 5
0.21547 0.22103 0.95937
V3 7 9 4

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 0.13818 0.27495 0.08134 0.99858
V4 5 5 6 6
0.22245 0.11169 0.23527 0.35611 1.21839
V5 3 8 2 3 9
0.22688 0.00688 0.09369 0.26826 1.00933
V6 0.21708 3 1 4 3 2
0.31331 0.37741 0.15477 0.16825 0.32161 0.26788 0.99726
V7 9 5 4 3 4 6 6
0.21236 0.25195 0.12819 0.45678 0.17174 0.30813 1.02441
V8 7 6 0.26864 3 2 1 5 3
0.18446 0.25242 0.20388 0.28155 0.32038 0.14563 0.13592 0.27184
V9 6 7 3 3 8 1 2 5 0.893203883

Interpretation: above is the result of covariance data analysis.

24
CHAPTER-5- CONCLUSION AND SUGGESTION
5.1 RESULTS:

Following are the results of application of big data in finance

 Increased revenue and customer satisfaction: by gaining insight
into the behaviors of their clients a company can shorten payment
delay and generates more cash while improving customer
satisfaction.
 Global growth: big data consisting structured and unstructured data
makes the data easily available through which any kind of finance
sector can easily grow in global market.

5.2 CONCLUSION:

 the finance sector is growing more effectively with the help of big
data available through artificial intelligence.
 Business risk can be easily tackled with the help of big data.
 Finance sector can provide more satisfaction to customer with the
help of big data available to them.
 Frauds can be prevented when big data of structured and
unstructured information used properly.

5.3 SUGGESTIONS:

Financial industry should use big data

 To reduce the risk companies are facing
 To regain trust of customer and improve customer satisfaction
 To increase sales and reduce costs.

25
References:

 www.Wikipedia.com
 journal of science engineering and technology research
 research paper on impact of big data analytics on banking
sector
 research paper on big data opportunities for account and
finance practice and research
 research paper on predictive analytics with structured and
unstructured data
 research paper on big data in financial management and
structured literature review and opportunities for IS research.

26
 APPENDIX

Questionnaire:

Application of big data in finance

* Required

1. Name of respondent *

2. gender *

Mark only one oval.

Female

Male

3. Age *

Mark only one oval.

Below 20

20-30

30-40

40-50

Above 50

4. Qualification *

27
 Mark only one oval.

Under graduate

Graduate

Post graduate

Professional

Other

5. Experience *

Mark only one oval.

Below 5 years

5-10 years

10-15 years

15-20 years

Above 20 years

6. Source of income * Mark only one oval.

Self employed

Employed

Owner of business

Investor

Other

7. status of respondent * Mark only one oval.

Financial

Non financial

28
8. big data in banking sector helps in fraud detection * Mark only one oval.
Strongly agree

Agree

Neutral

Disagree

Strongly disagree

9. application of big data helps the finance sector to face competition more confidently *

Mark only one oval.

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

10. application of big data allows proper analysis and appropriate decisions in stock
market *

Mark only one oval.

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

29
11. business risk such as bad investors and payers can be avoided through proper analysis
of big data * Mark only one oval.

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

12. proper utilization of big data can help in global growth of business * Mark only one
oval.
Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

13. Analysis of big data helps the finance sector to provide maximum customer
satisfaction *

Mark only one oval.

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

30
14. smooth functioning of regulatory compliance given by government can be achieved
through big data * Mark only one oval.

Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

15. Proper decision making can be achieved through big data available to business * Mark
only one oval.
Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

16. big data helps in innovating new services as per preferences of customers * Mark only
one oval.
Strongly agree

Agree

Neutral

Disagree

Strongly Disagree

31
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