Using Big Data to Expand Financial Services: Benefits and Risks

4 Pages Posted: 28 Apr 2020

See all articles by Facundo Abraham

Facundo Abraham

World Bank

Sergio L. Schmukler

World Bank - Development Research Group (DECRG)

José Tessada

Business School, Pontificia Universidad Católica

Date Written: November 1, 2019

Abstract

Big data is transforming financial services around the world. Advances in data analytics and computational power are allowing firms to exploit data in an easier, faster, and more reliable manner, and at a larger scale. By using big data, financial firms and new entrants from other sectors are able to provide more and better financial services. Governments are also exploring ways to use big data collected by the financial sector more systematically to get a better picture of the financial system as a whole and the overall economy. Despite its benefits, the wider use of big data has raised concerns related to consumer privacy, data security, discrimination, data accuracy, and competition. Hence, policy makers have started to regulate and monitor the use of big data by financial institutions and to think about how to use big data for the benefit of all.

Keywords: ICT Applications, Legal Institutions of the Market Economy, Financial Structures, Financial Sector Policy

Suggested Citation

Abraham, Facundo and Schmukler, Sergio and Tessada, Jose, Using Big Data to Expand Financial Services: Benefits and Risks (November 1, 2019). World Bank Research and Policy Briefs No. 143463, Available at SSRN: https://ssrn.com/abstract=3586634

Facundo Abraham (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Sergio Schmukler

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN MC 3-301
Washington, DC 20433
United States
202-458-4167 (Phone)
202-522-3518 (Fax)

HOME PAGE: http://www.worldbank.org/en/about/people/s/sergio-schmukler

Jose Tessada

Business School, Pontificia Universidad Católica ( email )

Vicuna Mackenna 4860
Santiago
Chile

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