by Louiqa Raschid, Professor of Information Systems, Smith School of Business; Professor, Institute of Advanced Computer Studies; and Faculty Affiliate, Center for Financial Policy
The transforming potential of data science for finance, and financial BIGDATA and social data, will emerge over the next decade. The promise is the availability of large scale datasets that allow the modeling of complex ecosystems reflecting cyber-human decision making. While complex data-driven models have emerged for climate modeling or systems biology, there has been less activity in macro-modeling with multiple heterogeneous economic or financial datasets.
The financial world is a closely interlinked Web of financial entities and networks, supply chains and financial ecosystems, where multiple financial entities may be counterparties to a complex financial contract. Financial analysts, regulators and academic researchers recognize that they must address the unprecedented and unfamiliar challenges of monitoring, integrating, and analyzing data at scale. This may result in improved tools for regulators to monitor financial systems as well as fundamentally new designs of market mechanisms, new ways to reach consumers, new ways to exploit the wisdom of the crowds to review and rate financial products, to make recommendations, etc.
The 2008 financial crisis raised awareness of the dearth of computational tools and datasets for early warning, monitoring and recovery. The following years saw the emergence of data science as a research paradigm as well as the availability of BIGDATA and social data. Over the last five years, I have been leading an effort to develop the next generation of financial cyberinfrastructure (tools and datasets) and to develop a “data science for finance” agenda for research and education.
Over the next few months I will be posting nuggets on upcoming events,research challenges and activities, and I will be interviewing the thought leaders in this exciting “data science for finance” adventure.
Let me sign off by inviting you to submit a paper or an abstract/poster to the first workshop on Data Science for Macro-Modeling with Financial and Economic Datasets DSMM2014 in conjunction with the leading ACM SIGMOD conference on data management.