Application of Big Data in Finance

Mayur Borkhatriya1, Hemil Shah2

Dept. of Data Science

Narsee Monjee Institute of Management Studies, Mumbai - 400056
mayur.borkhatariya08@nmims.edu.in 1, hemil.shah11@nmims.edu.in 2

Abstract- Information Systems to support Finance and Accounting functions within organisations form the backbone
of modern commerce. Big data has brought a transformational change to this research space the effects of which are
starting to be felt in industry and academia. This paper examines the potential research opportunities for the use of
“Big data” in the cross disciplinary space of Information Systems, Accounting and Finance. The concept matrix
reveals potential areas for further research.

Keywords— Big data, Decision Making, Accounting, Finance, Stock

I. INTRODUCTION Fraud Detection and prevention

Financial Institutions are not native to the digital Machine learning, fueled by big data, is greatly
landscape and have had to undergo a long process of
conversion that has required behavioral and technological responsible for fraud detection and prevention. The
change. In the past few years, and secure solutions for the security risks once posed by credit cards have been
industry. As a result, big data analytics has managed to mitigated with analytics that interpret buying patterns.
transform not only individual business processes but also When secure and valuable credit card information is
the entire financial services sector. stolen, banks can instantly freeze the card and transaction
,and notify the customer of security threats. As these data
II. LITERATURE REVIEW has to be analyzed in real-time big data helps to process
In this section we reviewed past papers related to use data at a faster speed.
of big data in financial sector and application of big data
in financial markets.
III. RESEARCH METHODOLOGY IV. DATA ANALYSIS AND
INTERPRETATION
Financial firms now have the ability to leverage big data
for use cases such as generating new revenue streams
through data-driven offers, delivering personalized
recommendations to customers, creating more efficiency
to drive competitive advantages, and provide
strengthened security and better services to customers.
Real time stock market insights
Big Data Technology is changing trade and investments.
Instead of simply analyzing stock prices, big data can
now take into account political and social trends that may
affect the stock market. As the volume of stock data is
very huge as the data is coming in minutes big data helps
to handle this huge volume of data. Machine Learning Fig.1: Real time stock market insights big data approach
helps monitors trends in real-time, allowing analysts to
compile and evaluate the appropriate data and make Stock market prices could be modelled using two
smart decision. approaches. 1) Technical: Statistical analysis of the
stock prices 2) Fundamental: Considers every detail
available and behaviour of economic agents that may
affect price. It is performed on historical and present
data, but with the objective of making financial
forecasts.
In this paper, we are using both technical and
fundamental analysis. As depicted in Fig. 1. Technical
analysis using machine learning algorithm on the stock
market prices is done. Fundamental analysis using social
media analytics is considered.
V. CONCLUSION AND FINDINGS
Banking and finance industries have embraced customer
analytics. Also trade signals and big data methods for
fraud prevention are receiving some research interest.
Topics that emerged from the concept matrix include
research into the Internet of Things particularly with
respect to the use of web enabled devices by banking
customers.

VI. REFERENCES
Cicon, J. 2014. "Big Data and the Dot Com Bubble,"
International Journal of Economics and Finance (6:8),
pp. 15-22.

Fanning, K., and Grant, R. 2013. "Big Data:

Implications for Financial Managers," The Journal of
Corporate Accounting & Finance (24:5), pp. 23-30.

Hagel, J. 2013. "Why Accountants Should Own Big

Data," Journal of Accountancy (216:5), pp. 20-21.
Fig.2: Fraud Detection and prevention using big data
https://ieeexplore.ieee.org/document/8342647
Self-organizing Maps (SOM) are used for clustering
data without understanding the class memberships of the https://www.researchgate.net/publication/333675505_St
input data. SOM can also be used to detect hidden ock_Market_Prediction_with_Big_Data_Through_Hybr
insights from the input data, which is also called as a idization_of_Data_Mining_and_Optimized_Neural_Net
Self-Organizing Feature Map (SOFM). SOM learns the work_Techniques
distribution of a set of patterns without any class
membership details as an unsupervised learning process.
SOM has been most widely used in pattern recognition
area.

SOM is a promising approach that uses a feature

extraction method in pattern recognition since here the
learning process in unsupervised and no pre-classified
data are required. SOM is very powerful in classifying
the data with many number of features without
compromising the classification efficiency.

As shown in Fig.2.By taking into consideration of all

the transaction data and using big data platform on
cloud infrastructure helps to provide security of the data
as well as by using Hadoop platform we can analyse
data at a faster pace and prevent the fraud transaction to
happen in real-time.