The world of big data is changing everything about business and how it operates. However, you might not realize that this is going to affect you even if you don’t have a business. It will filter down to the consumers, but how? This is what you need to know about how big data could affect you financially:
The housing market is going to see a radical shift. Right now, home prices are steady and they are increasing. However, the recovery is taking longer than expected because of the 2008 crash. Still, analysts are predicting that big data will allow banks to be smarter about how they hand out loans and mortgages for homes.
This could mean a couple of things, depending on your financial status right now. If you are a person with good credit, it could become a lot easier to finance your dream home. However, if you are not, then it might become more expensive. The reason is that banks are now able to crunch so many numbers so quickly that they can better predict which people are a good investment to loan to or not thanks to big data.
Home insurance quotes have always been more of a guess than anything. There are so many factors that go into what your final rate is going to be that it can be confusing to know how much to budget for it. Luckily, big data could help you financially in this area. The reason is that big data lets insurance companies calculate what your rates should be by polling all of their past data about customers. They might include data about crime in your area, natural disasters, or your past incidences. The good news is that if you don’t seem like much of a risk to the insurance company, you could see your quotes falling by a large amount.
Banking and Investment
It used to be that you needed years of financial knowledge to be a great investor and beat the market. However, recently, the rise of big data has ushered in programs that can use math to calculate what a great investment strategy will be.
Not only does this mean you could have a better chance of beating the market with technology that is smarter and better at math than humans, but also save money. Without having to pay a broker, you could pocket the extra cash or reinvest it.
Big data could affect the way your retirement goes. If you aren’t careful, your pension could start decreasing if your bank doesn’t use big data to compete with other funds. You need a solid foundation, and the more that investment firms look away from old models, they are going to start beating your retirement fund rate. Be sure to do your research and make sure your retirement is in good hands with those that know how to use big data to your advantage.
Sales and Business
If you run a business or work in sales or marketing, then you could see a great benefit coming your way from the increase in big data as it relates to the business world. Big data is letting companies get more insights than ever before.
In the past, you needed thousands of transactions before you could start to tweak your marketing or sales scripts. Today, you only need a few. The technology available allows you to take that information and make deep insights. You can use this new information to make major changes that give you immense growth by catering to what the data is telling you.
In today’s world, the big data revolution is in full swing. You need to know how it will affect you so you can plan for the future. The information above will help you plan what to do about all of the information that is changing the world as we know it. That way you can have peace of mind.
by: Kevin Faber