The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Alternative Data Moves into The Mainstream Led by Business Insights, Geolocation and Pricing Data

Alternative data is moving into the mainstream, but not without caveats including incomplete datasets, poor quality, limited volume, unverified data and a lack of historical data for back-testing. Selecting valuable datasets in the proliferation of alternative data can also be challenging and calls on firms to focus on what answers they can get from the data that they can’t get elsewhere.

Webinar Recording: How to exploit the opportunities of alternative data

The adoption of alternative data in the trading environment was manifested in the results of an audience poll made during a recent A-Team Group webinar that discussed how to exploit the opportunities presented by alternative data. Some 67% of the audience members said their organisation is using alterative date to some extent, 27% to a small extent, and 7% to the greatest extent possible.

Dale Richards, board and strategy advisor for fintech and data providers, and a webinar speaker, said the the most popular alternative data types at the moment are business insights, geolocation and pricing data. James Cantarella, director of product strategy, news, data and analytics at Dow Jones, concurred, although he added that it will take time for alternative data to come standardised and as useful as more established news and credit card data. There will, however, be more types of data going forward, he said.

Use cases of alternative data range from identifying short-term signals to picking up breaking news on Twitter, or as Mark Ainsworth, head of data insights at Schroders, comments, ‘anything where there is money to be made’.

Featured Download: How to exploit the opportunities of alternative data

While the benefits of using alternative data include gaining unforeseen insights and competitive advantage, the challenges of sourcing and deploying the data successfully can be daunting. A second poll of webinar audience showed 60% of audience members noting integration as a key challenge, 30% unstructured data formats, a further 30% incomplete datasets, 20% unverified data, and 10% no archive for back-testing.

Will this this hold back progress? Highly unlikely, with 67% of audience members saying alternative data will become very important at their organisations over the next few years and 33% saying it will be critically important.

Related content

WEBINAR

Recorded Webinar: Approaches to migrating market data to the cloud to drive agility in trading operations

Market data in the cloud is an attractive proposition in terms of reducing the cost of on premise servers and storage, and moving into a more agile and flexible data delivery environment. It is also well suited to working from home, the fall-back of many financial institutions during lockdowns caused by the coronavirus pandemic. But...

BLOG

SteelEye Teams with txtsmarter for Messaging Data Capture

Financial compliance and analytics specialist SteelEye is adding txtsmarter’s messaging capture and archiving capability to its communications surveillance solution, giving clients access to native messaging data sourced from Android SMS/MMS, WhatsApp and – uniquely – Apple iMessage, in real time. The combined solution adds mobile phone messages to the range of electronic communications that users...

EVENT

RegTech Summit APAC Virtual

RegTech Summit APAC will explore the current regulatory environment in Asia Pacific, the impact of COVID on the RegTech industry and the extent to which the pandemic has acted a catalyst for RegTech adoption in financial markets.

GUIDE

Enterprise Data Management, 2010 Edition

The global regulatory community has become increasingly aware of the data management challenge within financial institutions, as it struggles with its own challenge of better tracking systemic risk across financial markets. The US regulator in particular is seemingly keen to kick off a standardisation process and also wants the regulatory community to begin collecting additional...