Data
analytics (or data science) is presently booming in the financial industry.
More and more financial firms are introducing applied and machine learning
systems to forecast markets and conduct non-traditional research. The demand
for skilled analysts with data science skills is the area of growth within the
industry.
The new
course (FINA 4931: FinTech Topics) developed and taught this spring by Dr. David Krause, AIM program director at Marquette
University, seeks to provide exposure to the new tools of the trade. Dr. Krause
said, “I’m astounded by the explosion of big data into the area of fundamental
financial research over the past year. Today’s finance majors need much greater
data analysis skills, including data coding, wrangling, statistical analysis
and presentation.”
The
explosion of social media has produced vast amounts of unstructured data and
text – and the ability of the research analyst to quickly tap into this huge trove
of data is essential. While the concept of “big data” has over the last few
years has grown, a sizable swell in interest and media attention has followed.
Firms such as Cambridge Analytica, Facebook and Google (and other data and social
media companies) are now under fire for their use and questionable sharing of the data
collected about their users. U.S. political headlines about Russia’s alleged interference
into the 2016 elections have raised awareness about the enormous impact big data
can play on everyone’s lives – even those off the grid.
Krause
continued, “Big data is definitely here to stay, and it grows with trillions
of terabytes of new data produced daily. The ability to make sense of all this
data and use it to understand what is happening to the demand for firms’ goods
and services will become an integral part of the job of the investment analyst. It won't be a luxury for an analyst, it will be a necessity.”
The investment
industry is seeking a new generation of trained data experts and financial analysts
who are skilled in data science – and according to Krause, “There is a growing
skills gap for trained big data experts and financial analysis. I expect data
analytic-related jobs in the financial industry will be in high demand over the next
several years due to the shortage of skilled candidates. Hopefully the AIM program will help to fill some of that gap.”
A degree in
data analytics isn’t necessary; however, an understanding of the
technical aspects of data mining, storage and cyber-security will be important.
Knowing where data is located and how to access relevant bits of information
from enormous unstructured databases in order to assist in analysis and making inform
decisions is the future.
Dr. Krause thinks that the
topics covered within this unique course will eventually be incorporated within the
curriculum of the Applied Investment Management program at Marquette
University. “A degree in finance with strong data analytics abilities will set
our students apart from others. Combining this ability with other important
transferable skills, such as project management, critical-thinking and
problem-solving will open up opportunities for our students."
