Data “de-identification”: The stairway to big data heaven

Credit union interest in Big Data is at an all-time high. The promise of predictive analytics and other Big Data opportunities will be a key part of helping the industry compete more effectively with traditional banks and fintech upstarts.

However, where does the data for Big Data come from? The answer is simple: from the credit unions themselves. For example, the loan loss forecasts required by CECL models will require data from many credit unions to increase their predictive accuracy.

While credit unions are eager to cash in on the Big Data boom, one of the costs is “contribution” of their own data to the Big Data “lake”. A data lake is a virtual “storehouse in the cloud” that holds a vast amount of data that can be used for Big Data analytics.

continue reading »