• News
  • Technology
  • Culture
  • Entertainment
  • Sport
  • Travel
  • Music
  • More
    • Politics
    • Lifestyle
    • TV
    • Games
Monday, January 30, 2023
  • Login
No Result
View All Result
NEWSLETTER
FINCHANNEL
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE
No Result
View All Result
FINCHANNEL
No Result
View All Result
ADVERTISEMENT
Home Business

Alternative Data Driving Extreme Market Research Disruption 

by The FINANCIAL
May 25, 2022
in Business
0
Significant Investment to Commercialise Quantum Technologies
Share on FacebookShare on Twitter

Numerous indicators make clear that the next five years will usher in extreme transformation for a multitude of industries and sectors as well as the global economy at large. This begs the question: what is driving such significant and rapid change? This big question just might be answered in two words: alternative data.

Companies that are slow to incorporate alternative data into their R&D, marketing, investment, risk analysis and other key processes expose themselves to extreme opportunity loss at best and operational peril at worst.

As one prime example, active investment management firms—including hedge funds and even private equity funds—incur the strategic risk of being outmaneuvered by competitors leveraging alternative data in their securities valuation and trading signal process. This as alternative data has emerged as an essential tool for investment management firms seeking market outperformance, known as “alpha.”

RelatedPosts

How to unlock your full investment potential

Tegeta Motors was officially awarded with the International Award of Groupauto International

What were the worst natural disasters in 2022?

Sharp, Long-lasting Slowdown to Hit Developing Countries Hard

As an ever-evolving methodology, the last decade has ushered in a myriad of new types and sources of alternative data. Unlike traditional data made available by financial exchanges and indexes, SEC filings, financial statements, corporate filings, analyst predictions, press releases, management presentations and other well-entrenched mainstream sources, today’s breed of alternative data sets are being compiled from wide ranging and disparate sources. Everything from financial transactions, satellites, sensors and IoT-enabled devices, to e-commerce portals, public records, mobile devices, social media, web traffic and more. However, web scraping and financial transactions are, by far, the most common methods of alternative data procurement.

US Alternative Data Market - Credit GrandViewR.jpgSo lucrative is the economic upside of alternative data assets, the category is experiencing a veritable gold rush mentality that is driving extreme growth worldwide across practically every industry sector. This, as the global alternative data market size is expected to reach USD $143.31 billion by 2030—a staggering increase from $2.7 billion in 2021—with the category forecasted to expand at a compound annual growth rate (CAGR) of 54.4% from 2022 to 2030, according to Grand View Research.

As one industry case in point, investment firms are actively expanding their informational advantage by incorporating alternative data into their investment and risk processes. An EY Global Alternative Fund survey found that the vast majority (a full 70%) of hedge fund managers and over half (56%) of private equity funds currently use, or plan on using, alternative data to support their investment process.

two-monitors - LO.jpgBeyond banking and financial services and insurance (BFSI), reported to have collectively led the alternative data market in 2021 with a revenue share of more than 15.0% during the period, there are other alternative data early adopters. A few notables making great strides in the space include online retailers, SaaS purveyors and hospitality. These and other such industries are tapping the power of this alt intel for an array of projection activities, with predictive and algorithmic modeling, demand and trend forecasting, lead generation and competitive intelligence among them.

“There are numerous categories of alternative data, and the businesses who fare best are those with the capability to mine insights from the collected data and cross reference and combine it with other types of data, thus enabling investors to identify profitable trends and strategic opportunities,” notes Julia Valentine, Managing Partner at professional services firm AlphaMille.

According to the Alternative Data Global Market Report 2022, North America was the largest region in the alternative data market in 2021. The main categories of alternative data—characterized as the non-traditional type from conventional sources that can serve as an indicator of future performance—are credit and debit card transactions, email receipts, geo-location (foot traffic) records, mobile application usage, satellite and weather data, social and sentiment data, web scraped data and web traffic.

“The driver behind this phenomenon is two-fold: investors’ appetite for using the data and the providers’ willingness to sell credit card transaction data,” Valentine says. “Moreover, data providers have been enhancing their capabilities of sorting credit card transaction data by gender, age, seller, geography and other metrics.”

Of course, these types of drill down insights can make it much easier to identify and evaluate opportunities, especially when advanced analytics and data science are applied to examining alternative data sets.

According to Valentine, these offerings produce a crucial differentiator generating alpha for buy-side entities like hedge funds, mutual funds, private equity funds, pension funds, unit trusts and life insurance companies.

“It’s essential for investors to have curated alternative data to make their teams, innovation and companies more competitive,” said Tracy McWilliams, CEO of Inspire Global Ventures, which launched the JASPY single source private company management system. “Machine learning-enabled alternative data analytics assist our clients, mid-market companies and investment firms, make faster and more informed decisions about investments, innovation, M&A and partnerships with early-stage and private placement companies.”

The benefits of employing alternative data are seemingly innumerable. “Among the most important is its ability to derive proprietary real-time signals providing alternative viewpoints, unforeseen insights or perhaps both,” notes Valentine. “The ability to go beyond standard financial data to understand company performance, market dynamics or consumer behavior is extraordinarily valuable for companies and investors who desire to plan and execute in a calculated, enlightened and intentional way with mitigated risk.”

Even amid the extreme upside, a number of challenges plague processes for incorporating alternative data into the investment and risk models. “As compared to the traditional financial data collection, alternative data assets are known to be unstructured, lack specific patterns and, given its high collection frequency, require significant storage and processing resources,” says Vita Koreneva, AlphaMille Managing Partner.

“Collecting and analyzing alternative data sets certainly requires navigating any number of difficulties or outright obstacles,” Valentine warns. “This includes the procurement of expert personnel and cutting-edge technologies like analytics, fluid data architecture and data science platforms, as well as testing tools to actually leverage meaningful insights gleaned from the data. For example, AI tools such as ML and Natural Language Processing (NLP) are used for analyzing alternative data, unlocking its insights and value and boosting the growth of these assets. ESG (Environmental, Social, Governance) data is an key example of alternative data where multiple providers in the public markets are supplemented with the use of multi-modal AI to collect data used by private markets that is unavailable through existing data providers.”

Alt data implementation.pngAccording to Valentine, starting or enhancing an alternative data platform involves multiple steps: design, plan, source data, integrate, transform, use ML, deploy, support and evaluate. A shorter, five-step implementation model is also available for entities that are ready for a fast route to value creation.

With such specialized tools and skillsets involved with mining and distilling alt data, many understandably outsource the function. “A few key considerations for a prospective professional services partner involve their ability to quickly integrate new solutions with existing infrastructure; cost of data feeds; and proving what they deem to be optimal, uncorrelated data sets genuinely add quantifiable value rather than noise,” she says.

Valentine further recommends they should also demonstrate an aptitude for key requirements of an alternative data platform, such as rapid and efficient onboarding of data sources; combining structured, semi-structured and unstructured data sets; and data preparation and normalization, among others.

“Data mastering is fundamental to gleaning insight from this seemingly limitless universe of information,” notes Christian Robertson, CEO of Datasynthesis.  “It means tracking the data lifecycle from its source—be it real-time or historical, structured or unstructured—through a strict rules-based validation process generating actionable data used to feed the various business intelligence tools used in decision making.  However, to distill meaning from so much information one must adopt an active data mastering approach, which can only be achieved by leveraging the latest open-source technologies with capabilities that far exceed anything possible with existing legacy systems.”

Preconditions and complexities aside, AlphaMille Chief Revenue Officer Rick Lutz is keeping an optimistic eye on the big picture. “Alternative data hasn’t nearly reached critical mass as of yet and there is tremendous growth ahead in this space,” he says. “The big winners will be those that onboard the right ‘kind’ and caliber of experts who can adeptly navigate this highly specialized and ever-changing field. Done right, the financial upside is stratospheric.”

Digital transformation demands agility. That which companies can quickly identify and adapt to ever-fluid business conditions to both survive and thrive. Having the ability to adeptly procure and process alternative data provides a tremendous advantage … especially for those needing to pivot in the short term. This, whether to reconfigure a strategy, structure, process, team or technology to better assure value-creating—or value-protecting—opportunities. To empower an organization to expand quickly and cost-effectively. To save costs by realizing it is more profitable to outsource non-critical functions to expert providers. To utilize cutting-edge cloud, cybersecurity and data science tools to increase productivity. The profit promoting outcomes are seemingly endless.

No matter the industry in which you operate, now is the time to architect a sound and scalable alternative data plan ensuring your company can keep pace in the 21st Century Digital Age.

By Merilee Kern, MBA

Forbes Business Council, Newsweek Expert Forum and Rolling Stone Culture Council Member Merilee Kern, MBA is a senior-level brand, leadership, and communications analyst and strategist. As Founder and Executive Editor of The Luxe List, she works with companies, agencies, C-suite thought leaders, and subject matter experts worldwide across a wide array of B2B and B2C companies.

ADVERTISEMENT
The FINANCIAL

The FINANCIAL

Since 2005

Related Posts

How to unlock your full investment potential
Press Releases

How to unlock your full investment potential

by The FINANCIAL
January 25, 2023
0

Brokerage in Georgia - Everything You Should Know. With Georgian capital markets being in an emerging phase, services intended to...

Read more
Tegeta Motors was officially awarded with the International Award of Groupauto International

Tegeta Motors was officially awarded with the International Award of Groupauto International

January 16, 2023
What were the worst natural disasters in 2022?

What were the worst natural disasters in 2022?

January 11, 2023
Sharp, Long-lasting Slowdown to Hit Developing Countries Hard

Sharp, Long-lasting Slowdown to Hit Developing Countries Hard

January 11, 2023
Next Post
The superfoods that fueled ancient Andeans through 2,500 years of turmoil

Should There be more Microbes on Your Plate?

Please login to join discussion
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
Vaccination

How many people died after COVID-19 Vaccination?

November 20, 2021
How to Check KRA Pin Using ID Number

How to Check KRA Pin Using ID Number

June 25, 2018
Full-dose blood thinners not a cure for critically ill COVID-19 patients

How many people have died as a result of a COVID-19 vaccine?

October 4, 2021
Rishi Sunak’s billionaire wife also runs these three companies. 

Rishi Sunak’s billionaire wife also runs these three companies. 

October 25, 2022
Startled sherman furnished repair gang kansas

Startled sherman furnished repair gang kansas

0
Ft. trace falling nixon recovery sacred

Ft. trace falling nixon recovery sacred

0
FIFA 16 review: A mammoth footy bit of magic

Prepare mounted cited perspective

0
Protest threatened hurt conferences observation precise

Protest threatened hurt conferences observation precise

0
What are the top 3 strategies for business automation?

Protected: Want Loyal Employees? Do This

January 26, 2023
Fugitive Extradited from Cameroon to the United States to Serve 80 Year Prison Sentence

Second Bank Employee Admits Role in Fraud Conspiracy

January 25, 2023
Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

January 25, 2023
Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

January 25, 2023

Popular Last 24h

  • EasyJet to fly to London from Stockholm Arlanda

    The London Diplomatic List, Addresses, Contacts & Working Hours

    0 shares
    Share 0 Tweet 0
  • Pfizer Names Albert Bourla Chief Operating Officer

    0 shares
    Share 0 Tweet 0
  • 5 Assets To Store Your Wealth During Times Of Crisis

    0 shares
    Share 0 Tweet 0
  • How to Check KRA Pin Using ID Number

    0 shares
    Share 0 Tweet 0
  • Research: Is Portuguese real estate worth buying right now? (2022, Q3)

    0 shares
    Share 0 Tweet 0
  • Nearly 900 Million Worldwide Wanted to Migrate in 2021

    0 shares
    Share 0 Tweet 0
  • YouPorn made TikTok like app for adults

    0 shares
    Share 0 Tweet 0

LATEST POSTS

What are the top 3 strategies for business automation?

Protected: Want Loyal Employees? Do This

January 26, 2023
Fugitive Extradited from Cameroon to the United States to Serve 80 Year Prison Sentence

Second Bank Employee Admits Role in Fraud Conspiracy

January 25, 2023
Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

Sussex County Woman Sentenced to 34 Months in Prison for Concealing Terrorist Financing to Syrian Foreign Terrorist Organizations

January 25, 2023
Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

Brooklyn Park Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

January 25, 2023
Former CEO Of Email Security Company Sentenced To Five Years In Prison

Former CEO Of Email Security Company Sentenced To Five Years In Prison

January 25, 2023
Proven Forex Trading Strategies for Beginners

Trusted B2B Trading Platform

January 25, 2023
Part-time working can boost economy and bring economically inactive people back into work

Part-time working can boost economy and bring economically inactive people back into work

January 25, 2023
How to unlock your full investment potential

How to unlock your full investment potential

January 25, 2023
IFC, Canada Continue Supporting Sustainable Energy Financing in Lebanon

Nearly 900 Million Worldwide Wanted to Migrate in 2021

January 24, 2023
65% of Europeans see EU membership as a good thing, the highest result since 2007 

IPSOS Poll: Despite some softening, support for Ukraine is still strong across western countries

January 23, 2023

LATEST INTERVIEWS

Russian Patriarch Kirill Says Dying In Ukraine ‘Washes Away All Sins’

Interview: Why Putin Might Prefer A Stalemate To Going Nuclear On Ukraine

by The FINANCIAL
October 22, 2022
0

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

Kvaratskhelia Football Dynasty: Mamia, Badri, Khvicha and Tornike

by Tengiz Pachkoria
August 11, 2022
0

“Green business is a key instrument to support business development in a sustainable way”

“Green business is a key instrument to support business development in a sustainable way”

by The FINANCIAL
July 27, 2022
0

Running an environmentally friendly business helps to reduce impact on the environment

Running an environmentally friendly business helps to reduce impact on the environment

by The FINANCIAL
July 27, 2022
0

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

Georgian Industrial Group Continuing to Implement Energy Efficient Projects and Contribute to Sustainable Business Development

by The FINANCIAL
July 27, 2022
0

“We have planted under 50 000 trees and seedings”

“We have planted under 50 000 trees and seedings”

by The FINANCIAL
July 27, 2022
0

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

The Committee on the Environment and Natural Resources of Georgia – The Role of the Public Sector in Promoting Green Business

by The FINANCIAL
July 27, 2022
0

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

Leading the way for Green Corporate Culture, With 100-step Environmental Program Completed RMG enters the New Phase of Green Development

by The FINANCIAL
July 27, 2022
0

Newsletter

ADVERTISEMENT

GET IN TOUCH

E-mail your company news at:

news (at) financial.ge Letters to the Editor: editor (at) finchannel.com

Local Marketing contact:

(+99532) 2252 275 | 76 EXT: 1 (+995 558) 03 03 03 (mobile) marketing (at) finchannel.com

Requests from abroad:

(+99532) 2252 275 | 76 EXT: 7 (+995599) 96 52 52 Email: zviadi (@) finchannel.com Contact video editor: E-mail: video (at) financial.ge

Postal address: 17 Mtskheta str. Tbilisi, Georgia 0179 The FINANCIAL

RESOURCE

  • Work at the FINANCIAL
  • ePaper
  • Advertise in The FINANCIAL
  • Access ePaper
  • Guest posts
  • Contributed articles
  • AmericanStockNews
  • Coupon Codes
  • GLOSSY MAG
American Culture Center
ACC Partner

GUIDEBOOK

  • Meet our team
  • Invest in Georgia
  • Become contributor
  • Archive

FOLLOW US

  • Facebook
  • Twitter
  • Google+
  • Youtube
No Result
View All Result
  • Home
  • Business
    • BANKS
      • GeoBanks
    • Finance
    • Insurance
    • Markets
    • Pharmacy
    • Press Releases
    • RealEstate
    • RealEstate
    • Finance
    • Insurance
    • Banks
      • GeoBanks
    • Markets
    • Press Releases
    • Personal Finance
  • World
    • America
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Europe
    • Georgia
      • Media
    • Ukraine
    • Americas
    • UK local news
  • Travel
    • Hotels in Georgia
    • Tours in Georgia
  • Videos
    • Promos
    • Soundslides
    • TheClinics
    • TheHoteliers
    • TheUniversities
    • TheHoteliers
    • TheClinics
    • TheUniversities
    • BestWorkplaces
    • Soundslides
    • Promos
    • Banking Forum
      • Promos
      • Soundslides
      • TheClinics
      • TheHoteliers
      • TheUniversities
  • Opinion
    • Editorial
      • Analysis
      • GORBI
      • OP-ED
      • VISA Editorial
    • Analysis
    • Gorbi
    • Book reviews
  • Tech
  • Interview
  • People
    • CityLife
    • Health & Beauty
      • Coronavirus
    • LifeStyle
    • Employment
      • MyCareer
    • Education
    • Media
    • Celebrities
  • Oil&Auto
    • Auto
    • Energy
  • EN
    • EN
    • GE

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.