1.
Lars Hamberg
Predictive Analytics
in The Investment Industry
BIG DATA & ANALYTICS FOR BANKING SUMMIT
December 1 & 2, 2015 | New York

2.
STRATEGIC SCOPE
OVERVIEW & OUTLOOK

3.
QUESTION:
Has Big Data failed

4.
QUESTION 1:
Has Big Data failed
…to deliver on its hype?

5.
Big
data
defini'on?

6.
Big
data
defini'on?
“too
large
OR
complex
for
tradi'onal
processing
methods”

7.
general blur ?
buzzwords and distinction?
big
data
analy'cs
or
advanced
analy'cs
?
predic've
analy'cs
or
big
data
predic've
analy'cs
?
machine
learning
?

8.
modern companies
want to know everything – what about banks?
structured
data
advanced
analy'cs
staying
ahead
of
the
connected
clients
predic've
analy'cs
machine
learning

9.
QUESTION 2:
Why has Big Data failed
to deliver on its hype?

10.
B I G D A T A – V I S I O N R U N N I N GA H E A D O F R E A L I T Y ?

11.
BIG DATA HYPE CYCLE
Trigger
Enlightenment
Plateau of Productivity
Peak of Inflated Expectations
Trough of Disillusion

12.
BIG DATA HYPE CYCLE
Trigger
Enlightenment
Plateau of Productivity
Peak of Inflated Expectations
Trough of Disillusion

13.
BIG DATA HYPE CYCLE
WHY ARE WE HERE?
Trough of Disillusion

14.
BIG DATA HYPE CYCLE
THE CHALLENGE OF
DEALING WITH THE REALITY
OF THE BIG UNSTRUCTURED
DATA STACK
Trough of Disillusion

15.
In the big data stack
Unstructured
80-90%

16.
2.5+
million
words
in
english

17.
QUESTION 3:
Will Big Data deliver on
its hype?

18.
Yes!

19.
Why?

20.
Confluence of trends

21.
Confluence of trends
1. Data explosion - 24m doubling rate

22.
Confluence of trends
1. Data explosion - 24m doubling rate
2. Smartphone user behavior – 150x/day

23.
Confluence of trends
1. Data explosion - 24m doubling rate
2. Smartphone user behavior – 150x/day
3. Breakthrough technologies: Machines
are learning to ”read and understand”
unstructured data on a large scale

24.
Confluence of trends
1. Data explosion - 24m doubling rate
2. Smartphone user behavior – 150x/day
3. Breakthrough technologies: Machines
are learning to ”read and understand”
unstructured data on a large scale (!)

25.
Confluence of trends
= the necessary conditions for
Big Data to deliver - and even
”over-deliver” - on its hype and
to transform many industries,
including the Investment
Industry

26.
Breakthroughs

27.
Understanding
the
meaning
of
words…

28.
Big
Data
Predic5ve
Analy5cs
in
Produc5on
and
in
Distribu5on

29.
Big
Data
Predic5ve
Analy5cs

30.
Magic
or
OSINT?

31.
Magic
or
OSINT?

32.
Big
Data
Predic5ve
Analy5cs
in
Produc5on
and
in
Distribu5on

33.
The mysteries of monetizing vast streams
of unstructured language data…
From data… …to dollars?

34.
MUCH BETTER TEXT ANALYTICS
MUCH BETTER PREDICTIONS
MUCH BETTER SENTIMENTS

35.
Magic
or
OSINT?
wha5smonitor.com

36.
Big
Data
Predic5ve
Analy5cs
in
Produc5on
and
in
Distribu5on

37.
I
am
special,
but
not
very
different…

38.
Watson
Personality
Profile
(IBM)
Seman'c
Profile
(Gavagai)

39.
Use cases from financial industry
Distribution of investment products with
massive increases in profitability – Task &
Question
Common denominators for success
Common denominators for failure

40.
Use cases from financial industry
Production of investment products –
alpha creation with big data predictive
analytics – Task & Question
Common denominators for success
Common denominators for failure

41.
QUESTION 4:
Impact of Big Data
on your business?

42.
Huge (transformative)
Imminent (surprising)
Winners & Losers (during the
shift – like in all major shifts)

43.
Key take-aways:
Big Data has so far failed to deliver on its promise/hype – BUT
will over-deliver on its hype: Unsupervised, learning, scalable,
systems that understand the Big Data stack of language data,
enabling useful sentiment analysis and useful prediction
analytics on vast amounts of data
Predictive analytics, profiling, alias matching – use cases show
huge potential for disrupting most industries…Expect a
transformative shift in competitive landscape across most
industries – including banking
Banks – expect margin pressure, use case success stories in
analytics & opportunities for incumbents in and outside “non-
bank services” – uniquely positioned as distribution partners
Everybody can be a winner in this imminent shift – get involved
in advanced data analytics!

44.
Lars Hamberg
Predictive Analytics
in The Investment Industry
BIG DATA & ANALYTICS FOR BANKING SUMMIT
December 1 & 2, 2015 | New York