Banking is already a big industry, in India and across the world, but – how bigger will it grow? Consider this: Every household is a customer of some bank; financial services have become a part of everyday lifestyle. There are more than 200 million households in India; the exact figure according to an Open Source Data is 248,408,494. And most of these households, thanks to Modern Mobile Banking facilities, even the poorest in our nation have access to Banking.
Population is growing at a tremendous rate in India and so is the data collected from consumers – from traders to consumers and vice-versa, the flow of data has amplified. All for good! The Indian Banking Industry is getting bigger with Big Data. Not just bigger – more accurate, more futuristic and consistent. Collection, regulation and focused use of Big Data have advanced nowcasting, forecasting and many other financial and economic activities of Banks.
Recently, the Reserve Bank of India has stepped into the Big Data League, with plans to build Data Science Labs for enhancing the nowcasting, forecasting approaches and also monitor surveillance and economic data of the Indian subcontinent. According to Analytics India Magazine, the RBI envisions to begin the functioning of the Data Science Labs by December 2018. This means there are going to plenty of Data Science and Analytics-based jobs at the Central-level, to carry out the following techniques:
What exactly is Nowcasting? Our experts say, ‘It is the technique of leveraging the information of the present, and the recent past and the near future to derive conclusions and make certain useful predictions for immediate action.’ Literally, the term is a contraction for now and forecasting and has been used for a long-time in meteorology, very recently it has been adapted by economists and finance specialists. It has recently, in the 21st century, become popular in economics as a standard measure used to evaluate the state of an economy, e.g., gross domestic product (GDP).
Usually, the GDP and other economic standards are determined after a stretched delay, and are even subject to consequent amendments. Nowcasting models have been pragmatic in many institutions, in certain Central Banks, and the method is used consistently to monitor the state of the economy in real time. That’s the prime necessity: Real Time Analysis.
At this point, we have to know the difference between ‘Nowcasting’ and ‘Forecasting’ in the Banking industry – just to make sure we understand the essence of these techniques. According to 361DM Big Data Experts, Nowcasting uses very recent data, which may be small or large, to predict the immediate steps or actions to be taken – which may be engaged within the next few days, or even hours. Forecasting, on the other hand, is different and works on a huge ore of data accumulated for several months and years to make long-tern predictions and decisions.
Forecasts are used for a range of purposes. Governments and business units, both SMEs and corporates, use economic forecasts to help them regulate their policy, multi-year plans, business strategies and budgets for the impending years. Stock market analysts use forecasts to help them estimate a company’s valuation and its stock.
How can I get there?
That’s probably the question in your heart. We got the answer and the solution. Maybe you got enrolled for our MBA in Financial Management, but our career experts suggest that you increase the value of your MBA by doing a Data Science Course. Think about it!