Big Data. The challenging amounts of data that modern banks are facing are commonly known as “big data”. The idea is to have the ability to compute real-time linkages and correlations between
financial markets, the real economy, social networks, etc. While initially left behind by computer technology firms, some (but still very few) investment banks have now realized the importance of big data and are now catching up. For example, Goldman Sachs has invested USD 15 million in a big data analytics start-up, Kensho; Deutsche Bank has appointed several senior managers with knowledge in the field; and Banco Bilbao Vizcaya Argentaria (BBVA), a multinational Spanish banking group, has acquired a Spanish big data analytics start-up, Madiva.