Alternative data keys for financial services decision making, Bright Data Research reveals

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LONDON–() –Bright dates (formerly Luminati Networks), a leading online data collection platform, today released new research highlighting the importance of alternative data for financial services. The insights gathered in collaboration with the leading market research experts Vanson Bourne, demonstrate the impact of alternative data in the US and UK compared to old / traditional data. The survey found that nearly a quarter (24%) of financial services professionals who work for organizations that collect alternative data use it on a daily basis to support their work. The study interviewed participants from financial services sectors, including insurance, banks and hedge funds, and found a clear reliance on external data sources. 95% of financial services companies relied on outside information in the past year to contribute to business success.

The research also sheds light on the barriers financial institutions face when using and working with alternative data. Three quarters (75%) of banking professionals use alternative data status data analytics as their greatest challenge. Additionally, the survey revealed the insights that respondents are not currently getting from alternative data. For example, 80% of respondents said they needed more competitive insights from alternative data, and 79% hoped to use the data to learn about customer behavior. These results show that while many financial services providers use alternative data, there is a lack of understanding of how to properly analyze the information to generate insights.

Other important results of the survey are:

  • Insurance professionals (74%) and hedge funds (72%) find it much easier to incorporate alternative data into their decision-making than that of banks (57%).

  • 64% (64%) of companies that rely on alternative data sources to develop business strategies say alternative data influences their investment strategy and 59% say it influences their customer experience strategy.

  • Seventy-seven percent (77%) of respondents in the US find it easy or very easy to incorporate alternative data sources into decision-making, compared to just 49% of UK respondents.

“Gone are the days of relying on quarterly earnings reports as the primary data source for decision-making,” said Or Lenchner, CEO of Bright Data. “Financial services institutions are looking for alternative / external data for cutting edge intelligence that provides the most relevant, reliable, and accurate data available. We have seen a significant increase in companies in the space turning to Bright Data for alternative data collection. We look forward to continuing to support these organizations with customized online data that will guide their key business strategies and decisions. ”

In the survey, 100 employees from insurance companies, banks, hedge and quantum funds and credit companies were asked about their alternative use of data. The group was representative of the US and UK respondents and included employees who work in the IT and data departments of their companies.

To learn more about how Bright Data can help financial services companies build insights with alternative data, visit Here.

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