Welcome!

@BigDataExpo Authors: Pat Romanski, Elizabeth White, Liz McMillan, Yeshim Deniz, William Schmarzo

Related Topics: @BigDataExpo

@BigDataExpo: Blog Post

Big Data in Financial Analytics

Big Data and UIMA use cases

Big Data & Text Analytics: As  the analysis  of  large amounts  of unstructured  data is gaining a major space in enterprise  computing,  we  are seeing the emergence of more use cases in this regard.  While  the  term   "Big"  in Big Data   makes it more synonymous  with  Massively Parallel Processing frameworks like Hadoop,  however  the  underlying the success of  Big Data  relies  on effective usage of  content analytics  of the underlying  unstructured data.  I have high lighted  this thought process in my earlier  article, Big Data Analytics Thinking Outside Of Hadoop.

Unstructured Content Analytics is  defined  as the   process of  gaining  new insights  from  the  unstructured data, by  employing   text mining, image recognition, voice recognition and other related analytical techniques.


Big Data Journal was launched on SYS-CON.com in 2012

The below  material  explains   one such use case of  Big Data &  Text Analytics in  getting meaningful insights  from the Financial  Reports.

Financial Reports  & Analytics: All the  publicly  traded  companies in USA & else where  mandatorily  disclose  their corporate information to their  shareholders.  These annual financial statements   are available  as  downloadable reports  on the corporate websites  of  public  companies.   Apart  from the  annual report , there are other forms  of financial statements  like,  investor news letters, Quarterly earning presentation, conference calls by CFO  and other investor relationship documents form part of  an  organization's  financial standing in the eyes  of the  investor.

Most  of the  investors  and  investment analyst  firms  currently  uses  their specialized   knowledge to understand  these financial  statements  and  create meaningful  insights  out of them.  However  these analytics  are mostly limited to the structured  portions  of  the financial statements and not so much  on the unstructured  side of it.

To explain this more :

  • For example An annual report may contain statements like Balance Sheet, Income, Equity, Cash Flows etc.. these statements are highly structured and organized as per accounting principles so that any of the qualified financial analysts can understand them
  • At the same a typical financial statement also contains lot of unstructured information about growth strategies of the organization, road map, optimism, future vision, how the business model is aligned to the changing times etc...

So   an effective  analysis of  a financial statement  not only pertains  to the structured information but also to the unstructured  data available in the  financial statements.

BigData, UIMA  & Financial Report Analytics: The following   Big Data aligned  technologies  can be effectively used  in analysing the  financial  reports  to derive meaningful insights into the  large volumes  of unstructured data.

  • UIMA : UIMA stands for Unstructured Information Management Architecture is the major industry standard for content analytics.

 

  • Annotators : UIMATM Annotators do the real work of extracting structured information from unstructured data. You can write your own annotators. Though Annotators form part of UIMA framework lot of custom development is written is creating Annotators specific to the needs of the Finance industry. When documents are processed through the document processing pipeline, the annotators extract concepts, words, phrases, classifications, and named entities from unstructured content and mark these extractions as annotations. The annotations are added to the index as tokens or facets and are used as the source for content analysis.

  • Taxonomies : Taxonomies play a major role in identifying the topics of interest within a document using UIMA. In UIMA a type system defines the various types of objects that may be discovered in the document. Types in a UIMA type system may be organized into a taxonomy. For example, Company may be defined as a subtype of Organization

 

Realizing Financial Statement Analytics & Role of  XBRL: There  are not very many  UIMA  annotators  and  implementation of   text extraction specific to financial statements.  However  we find that,  under  APACHE UIMA community  there is  one such annotator,   The AlchemyAPI Annotator is a set of annotators that wrap the AlchemyAPI.

AlchemyAPI's  (http://www.alchemyapi.com/api/)  Categorization service can be used to categorize text, HTML, or web-based content, assigning the most likely topic category (news, sports, business, etc.).  The business categories  include  topics like, Business and Finance News, SEC filings, etc.

There  are  several  of  the   text analytics concepts  like  the below,  can be applied on the financial statements

  • Named Entity Extraction : Identify people, companies, organizations, cities, geographic features, and other typed entities within HTML pages and text documents/content.
  • Concept Tagging : Automatically tag documents and text in a manner similar to human-based tagging.
  • Keyword / Term Extraction : Extract important terms and "topic" keywords from HTML pages and text documents/content. Advanced statistical and linguistic algorithms analyze your content, "tagging" it with the most important words and phrases.
  • Sentiment Analysis : Identify positive, negative and neutral sentiment within HTML pages and text documents/content.
  • Relation Extraction : Identify facts and Subject-Action-Object relations within HTML pages and text documents/content.

Apart  from  the  already  developed  and community  supported  annotators,  we could   develop  new annotators  which  can take the best use of already  established  taxonomies  for the financial industry   in the form of  XBRL.

XBRL stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business information, providing major benefits in the preparation, analysis and communication of business information. It is one of a family of "XML" languages which is a standard means of communicating information between businesses and on the internet.

XBRL Taxonomies,  are the dictionaries which the language uses. These are the categorization schemes which define the specific tags for individual items of data (such as "net profit").  National jurisdictions have different accounting regulations, so each may have its own.  There are already well established  approved taxonomies  for  financial reporting  like  XBRL  US  GAAP  as listed in the  site, http://www.xbrl.org/FRTApproved.

As  evident  from  the  architecture  of UIMA  and annotator  entity extraction process, these established  taxonomies  can play a major role in areas like concept tagging,  which  can help in  getting the  meaningful insights  from    large  amounts of  textual and other  unstructured content in the financial statements.

Summary: As  enterprises  and analytics vendors  adopt  Big Data  as part of the mainstream ,  this  adoption will be  more meaningful  to  enable   the technology  to support new  business use cases.  Financial  Analytics  is  one such important area  ,  and with the support of    frameworks like UIMA  coupled  with  industry established taxonomies,  such  analytics  are quite possible  and worth to be implemented.

More Stories By Srinivasan Sundara Rajan

Highly passionate about utilizing Digital Technologies to enable next generation enterprise. Believes in enterprise transformation through the Natives (Cloud Native & Mobile Native).

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@BigDataExpo Stories
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, will discuss some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he’ll go over some of the best practices for structured team migrat...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., will introduce you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He will explore applications in several industries and discuss technologies that allow the deployment of advanced visualization solutions to the cloud.
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Datera will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...