EBA Report on Big Data and Advanced Analytics
A recent European Banking Authority (EBA) report outlines key challenges relating to the increased adoption of big data and advanced analytics.
Big data and advanced analytics – including machine learning – are increasingly prevalent in the banking industry, with their use only set to expand in future. Two-thirds of credit institutions surveyed by the EBA indicate that they are already using these kinds of tools in the delivery of services.
The EBA report also highlights that unless a number of “elements of trust” are addressed by financial institutions in their use of these new technologies, new risks almost inevitably arise. The list includes:
- Explainability and interpretability
- Fairness and avoidance of bias
- Traceability and auditability
- Data protection
- Data quality
- Consumer protection
These are issues that regulators the world over are concerned with at present and the EBA report provides a very useful summary of the questions that need to be addressed. Read more and access the report here.