Since the financial crisis, the sector has been failing to get on top off the relentless growth in external data, according to Robert Toguri, partner at EY Enterprise Intelligence Services. The result was that the sector is “missing opportunities both to get its own house in order and to open up new markets”. Toguri’s comments at a Code_n event were reported by IT publication Computing. Code_n is an organisation that promotes innovation in IT and which runs an annual competition for digital start-ups.
Toguri referred to the recent Libor, money-laundering and PPI (payment protection insurance) missselling scandals, then asked: “Is there a case for big data to be used to measure conduct against the legislation? Is there value in watching two traders talking across Twitter or on the phone to see whether or not they are trying to manipulate the market?”
Moreover, he added, banks are missing opportunities to make more intelligent trades. “Is there an opportunity for traders to assess risk based on all the social media information that's floating around out there?”
Major banks have started to respond to the needs of the big data challenge by appointing chief data officers (CDOs), Toguri said.
Computing’s report of Toguri’s speech is available by clicking here.