Big Data Offers Opportunities, But Has Limitations

Published 11th Mar 2015
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Big data and analytics are fundamentally transforming business decision-making. Insurance agents and financial planners can now harness massive stores of structured data to better target potential clients, verify income and even improve customer retention. Big data equips them with knowledge that makes the entire process more efficient and effective. But that’s true only if the information is accurate.

Many financial institutions collect their data from surveys or third parties, and that information often includes misinformation or selection bias with the samples. Boiling down the most relevant and accurate data is complicated even for data scientists, and few companies have benchmarks to help parse and interpret the constant stream of new data they collect.