In the financial technology world, collecting the right information is critical. Even though big data is often heralded as the best way to optimize financial services, smart data — which describes “data that has valid, well-defined, meaningful information” — is positioned to play a huge role in the future of the FinTech industry, according to an article in Inc. Magazine. For some enterprises, large volumes of data are still needed, but over time, the emphasis on meaningful data is likely to win out.
There is a significant difference between collecting piles of data and finding relevant information that can be used immediately. Generating critical information to create profiles and project customer behavior are what makes big data so appealing to FinTech companies. But it’s important not to lose track of the validity, quality and usefulness of the information. Big data is associated with a lot of “noise” that needs to be canceled out.
Smart data, on the other hand, offers a more valuable proposition. Solving business problems hinges on the availability of information that’s clear and that can be used immediately. As is the case in nearly every business sector, quality trumps quantity every single time. Tackling the precise pain points of a business model requires a gentle and smart approach, rather than brute force and sheer volume.