Welcome!

@BigDataExpo Authors: Liz McMillan, Yeshim Deniz, Elizabeth White, Kevin Benedict, 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 CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that Pulzze Systems will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems Inc, provides the software product "The Interactor" that uniquely simplifies building IoT, Web and Smart Enterprise Solutions. It is a Silicon Valley startup funded by US government agencies, NSF and DHS to bring innovative solutions to market.
SYS-CON Events announced today that CAST Software 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. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
In his session at @ThingsExpo, Dr. Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, presented the findings of a series of six detailed case studies of how large corporations are implementing IoT. The session explored how IoT has improved their economic performance, had major impacts on business models and resulted in impressive ROIs. The companies covered span manufacturing and services firms. He also explored servicification, how manufacturing firms shift from se...
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
SYS-CON Events announced today that Elastifile 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. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
SYS-CON Events announced today that Golden Gate University 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. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
IT organizations are moving to the cloud in hopes to approve efficiency, increase agility and save money. Migrating workloads might seem like a simple task, but what many businesses don’t realize is that application migration criteria differs across organizations, making it difficult for architects to arrive at an accurate TCO number. In his session at 21st Cloud Expo, Joe Kinsella, CTO of CloudHealth Technologies, will offer a systematic approach to understanding the TCO of a cloud application...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, 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. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
Cloud resources, although available in abundance, are inherently volatile. For transactional computing, like ERP and most enterprise software, this is a challenge as transactional integrity and data fidelity is paramount – making it a challenge to create cloud native applications while relying on RDBMS. In his session at 21st Cloud Expo, Claus Jepsen, Chief Architect and Head of Innovation Labs at Unit4, will explore that in order to create distributed and scalable solutions ensuring high availa...
Cloud adoption is often driven by a desire to increase efficiency, boost agility and save money. All too often, however, the reality involves unpredictable cost spikes and lack of oversight due to resource limitations. In his session at 20th Cloud Expo, Joe Kinsella, CTO and Founder of CloudHealth Technologies, tackled the question: “How do you build a fully optimized cloud?” He will examine: Why TCO is critical to achieving cloud success – and why attendees should be thinking holistically abo...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.