How Capital Markets can Benefit from Alternative Data?

Alternative data enhances the chances of higher returns by enabling the fintech firms to access a wide array of non-financial data sets.

FREMONT, CA: Alternative data uses diverse data from non-financial and non-traditional sources to gain business insights and improve investment decisions. The introduction of alternative data is impacting various investment ventures such as hedge funds, mutual funds, and pension funds. The emergence of alternative data has also influenced digital investment space. It is crucial to understand the complex factors determining the digital transformation as it can offer several strategic opportunities to the investors. Proactive investment managers are already leveraging alternative data sources from a number of sources such as social media feeds, metadata from email, news, and other geospatial information to improve their investment strategies.

Investment managers are experiencing a broad perspective of the market with the use of alternative data. For instance, coupling the data gained from social media platforms such as twitter with the complex analytical tool is assisting the investors to achieve a higher return on investments. Investment firms are utilizing alternative data to develop a more quantitative strategy for their investment plans. The advancement in disruptive technologies such as machine learning (ML) is also facilitating the investment firms to utilize data from varied sources.