Insights from Chris Orwa, Lead Data Scientist at I&M Bank Kenya

Insights from Chris Orwa, Lead Data Scientist at I&M Bank Kenya

Table of Contents:

1. Introduction
2. How I Got Into Data Science
3. The Importance of Finding Useful and Unique Data
4. The Process of Data Collection
5. Insight into Blockchain Technology
6. Insights into Cryptocurrency
7. The Role of Crypto in Financial Institutions
8. The Future of Blockchain
9. The Integration of AI and Data Analysis in the Financial Space
10. What to Expect in the Near Future

Introduction

As a data scientist at IBM, I have been working in the field of data science for eight years across various organizations. Additionally, I also write for Daily Nation as a data journalist. My passion for data began unexpectedly during my time at university when I initially wanted to develop games. However, I became fascinated by data mining and the ability to predict stock prices, insurance fraud, and more. This led me to Collect and analyze data, which eventually led to my popular blog. In this article, I will discuss the process of data collection, insights into blockchain and cryptocurrency, and the future of data analysis in the financial industry.

How I Got Into Data Science

During my time at university, I initially had aspirations of becoming a game developer. However, a lecture on data mining sparked my interest and captivated me with its ability to predict various outcomes. Intrigued by this newfound fascination, I started collecting and analyzing data straight out of university. Alongside a friend, I also ventured into a startup, which further fueled my passion for data analysis. Through a combination of accidental discovery and genuine intrigue, I found myself fully immersed in the world of data science.

The Importance of Finding Useful and Unique Data

In my Journey as a data scientist, I have always prioritized finding data that is both unknown and valuable. Many articles and analyses I encountered during my studies were either mundane or already known information, failing to Ignite my interest. Thus, I developed a mindset focused on seeking data that would result in something new, interesting, and useful. For instance, I realized that collecting discarded receipts could provide unique insights into retail analysis in Kenya. This approach ensures that the data I collect has a tangible impact and delivers value to others.

The Process of Data Collection

In all my data-related endeavors, I find it essential to follow two key principles. Firstly, I aim to discover information that is unknown to the majority of people. This ensures that the data I collect holds a Sense of novelty and provides fresh perspectives. Secondly, I prioritize the usefulness of the collected data. It is crucial for me to determine whether the data has practical applications and can contribute to valuable analysis. By adhering to these principles, I continuously strive to collect data that leads to Meaningful and insightful discoveries.

Insight into Blockchain Technology

Beyond the concept of cryptocurrency, blockchain technology has been surrounded by promises of improved practices and trustworthy systems. However, the implementation of blockchain outside of cryptocurrency has been limited, with few systems reaching widespread adoption. Despite being over a decade old, blockchain is yet to fulfill its potential. While there have been noteworthy advancements, it is clear that blockchain has not revolutionized every industry, as initially predicted. It remains to be seen which key sectors will embrace blockchain technology and successfully integrate it into their operations.

Insights into Cryptocurrency

Cryptocurrencies have generated significant interest and speculation, with some individuals and even countries considering the replacement of traditional currencies. However, the fluctuating value of cryptocurrencies, such as Bitcoin, has hindered their practical use as a medium of exchange. The volatile nature of cryptocurrencies often leads to them being treated as investment assets rather than as a stable form of currency. From a banking perspective, cryptocurrencies are not an attractive asset due to their instability. While cryptocurrency does possess some legitimate uses, its association with the underworld and potential for untraceable transactions present significant challenges for governments and financial institutions.

The Role of Crypto in Financial Institutions

Financial institutions face obstacles when considering cryptocurrencies. The speculative nature and fluctuating value of crypto-assets make them less favorable as long-term investments. Holding a significant amount of cryptocurrencies can result in substantial losses, which is counterproductive for banks. However, there may be some legitimate uses for cryptocurrencies within the financial sector, albeit with strict regulations. Despite its potential, cryptocurrencies are still far from becoming a mainstream medium of exchange, and their integration into traditional banking systems remains limited.

The Future of Blockchain

While blockchain technology still holds promise, it awaits a breakthrough that will propel it into the mainstream. There is a possibility that a large corporation with an existing product may successfully implement blockchain, resulting in widespread adoption. However, as of now, the full potential of blockchain is yet to be harnessed, and its impact on various industries remains uncertain.

The Integration of AI and Data Analysis in the Financial Space

In the financial industry, much of the Current focus is on using AI and machine learning to enhance efficiencies. Banks aim to predict customer behavior and provide better pricing for loans. While some of these advancements benefit customers directly, the full potential of AI lies in developing new products Based on data analysis. The future holds the possibility of personalized financial products that cater to specific customer needs. However, for the local market, the focus should primarily be on improving efficiencies before delving into more futuristic concepts such as self-driving cars or digital currencies.

What to Expect in the Near Future

In the near future, we can anticipate continued improvements in efficiencies within the financial industry. This includes better pricing for loans, enhanced customer experiences, and more streamlined processes. However, it is essential to recognize the limitations of the Kenyan market and focus on realistic advancements that ensure practical benefit. Rather than chasing revolutionary concepts, the financial sector should concentrate on gradually implementing AI and data analysis to improve existing practices.

Highlights:

1. The accidental journey into data science and the fascination with data mining
2. The importance of collecting useful and unique data
3. Principles to follow when collecting data
4. The limited implementation of blockchain technology beyond cryptocurrencies
5. The challenges and limitations of cryptocurrency in the financial sector
6. The potential for legitimate use of cryptocurrencies within strict regulations
7. The future of blockchain technology and its impact on various industries
8. Using AI and data analysis to enhance efficiencies in the financial space
9. The potential for personalized financial products based on data analysis
10. Realistic advancements in the near future to improve the financial industry's practices

FAQ:

Q: How did the author get into data science? A: The author accidentally discovered data mining during university and became fascinated by it, leading to a career in data science.

Q: What is the importance of finding useful and unique data? A: Finding useful and unique data ensures that the collected data provides valuable insights and contributes to new discoveries.

Q: What is the process of data collection? A: The author follows the principles of discovering unknown information and determining the usefulness of collected data.

Q: What are the insights into blockchain technology? A: Blockchain technology has seen limited implementation beyond cryptocurrencies, and its full potential is yet to be realized.

Q: What are the insights into cryptocurrency? A: Cryptocurrencies face challenges due to their volatile nature and limited practical use as a medium of exchange.

Q: How does cryptocurrency affect financial institutions? A: Financial institutions find cryptocurrencies unattractive as long-term assets due to their instability, but there may be some legitimate uses.

Q: What is the future of blockchain? A: The future of blockchain awaits a breakthrough for widespread adoption and impact across various industries.

Q: How is AI and data analysis integrated into the financial space? A: AI and data analysis are primarily used to enhance efficiencies in predicting customer behavior and improving pricing for loans.

Q: What can be expected in the near future in the financial space? A: The near future will bring continued improvements in efficiencies, better pricing for loans, and enhanced customer experiences in the financial industry.