Importance of Introducing Big Data into Financial Management
Finance and Accounting, University of London, London WC1E7HU,
| Abstract: | Big data has revolutionized human understanding of the world, altering our thought processes and problem-solving methods in significant ways. Its application in various sectors, particularly complex financial management, has brought forth unprecedented opportunities and challenges. Presently, big data stands as the most influential application technology in the realm of financial management. The critical value of incorporating big data into financial management primarily lies in the analysis and utilization of diverse and vast information through the processing mode of data science. By using big data analytics, organizations can enhance their financial management efficiency, provide more accurate decision-making power, and improve risk avoidance capability. This increased efficiency and accuracy in decision-making result from big data's ability to process and analyze large volumes of data in real time, thus enabling financial managers to make informed decisions promptly. Furthermore, the use of big data in risk management offers an effective way to anticipate potential financial risks and implement preventive measures. However, the application of big data in financial management is not without its challenges. Issues such as data security, privacy, and the need for advanced analytical skills pose considerable obstacles. Despite these, the benefits of big data far outweigh its challenges, making it an indispensable tool in modern financial management. This paper aims to delve into the importance and immediate benefits of introducing big data into financial management. It will further explore the challenges that come with its application, providing a comprehensive understanding of big data's role in revolutionizing financial management. The objective is to shed light on how big data can be effectively utilized in financial management to maximize efficiency, improve decision-making, and enhance risk avoidance capabilities, thereby contributing to an organization's overall financial performance. |
| Keywords: | Big Data; Financial Management; Big Data Security; Financial Technology Revolution |
| DOI: | 10.57237/j.jsts.2023.01.002 |
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Received: 8 September 2023
Accepted: 6 November 2023
Published Online: 15 November 2023
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