Buy- and sell-side firms including hedge funds, wealth managers, private banks and investment banks to benefit from enhanced alternative data coverage for improved investment edge.
9 July 2019 – 3d innovations (3di), a data management software and services company, today announced the launch of a new enhanced version of Profiler, a unique, analytical web-based tool that provides intelligence on the global market data industry. The upgraded vendor analysis tool (version 6) now provides an enriched catalog of alternative data vendors covering multiple industries beyond financial services – from manufacturing to consumer retail to oil and gas – that can derive unique datasets from non-traditional sources giving traders, asset and wealth managers and brokers the investment edge they need.
According to AlternativeData.org, buy-side estimated total annual spend for alternative data is expected to hit $1bn by 2020 while a recent Greenwich Associate study reports that in 2018 budgets for alternative data increased by 52 percent, on top of an increase of 76 percent the previous year. This confirms that the alternative-data space is exploding.
Today more than ever investors are under increasing pressure to find unique datasets that can give them an investment edge and justify their fees. However, finding information about alternative data suppliers and their services is often fragmented and time consuming.
“We realized that there was a client need to easily and quickly access exceptional datasets that not only cover a variety of industries but also uncover unique information mined from previously un-tapped sources – e.g. social-media posts, product reviews, smartphone or sensor geolocation, satellite images, mobile applications, browser cookies, email receipts, credit card transactions and so on,” said Jaspal Kaur, Head of Research & Analysis at 3d innovations.
She continues, “This is why we developed our enhanced version of 3di Profiler: it provides a completely new dimension to our market data coverage with over 300 new Alt Data vendors (and growing) covering multiple industries beyond financial services and their alternative data-sets. These include e.g. oil cargo movements derived from satellite constellation imagery or behavioral and footfall insights derived from geolocation sensors, which have the potential to reveal insights before traditional financial data and therefore give an important investment edge to financial professionals. It takes our coverage in Profiler to over 1,500 vendors and 3,000 services, saving investment and private banks, asset managers and fund managers valuable time in sourcing and deploying.”
With the enhanced version of Profiler, 3di is bringing a unique ‘Infobase’ that provides an unmatched and comprehensive view of these services, delivering critical benefits to its users including:
- Saving hours of research time, freeing sourcing and data analysts for more business facing activities.
- Informing in-house procurement and data management teams on the breadth and range of alternative data industry sources.
- Quickly identify competitors which include both alternative data products from both niche and traditional market data vendors.
- Easily evaluate products against their competitors and see where there are both differences and similarities with traditional market data vendors.
- Enables financial markets professionals to quickly identify the value of an alternative data source.
- Keeps abreast of breaking news on the alternative data industry reflecting new products and technologies, vendor changes, new datasets, mergers and acquisitions, regulatory news.
- Comparative analysis and benchmarking – alternative data product content/coverage and cost.
Richard Thomas, Global Lead for Enterprise Data at 3d innovations adds, “We have worked closely with industry pioneers like Alt Hub and Alqami who have been influencers for us in dealing with a new class of vendor. We have also been working closely with our clients’ Data Scientists, Big Data Analysts, Research depts. and traditional Market Data teams regarding coverage, functionalities and scope. As a result, we could be looking at covering up to 1,000 alternative data vendors by 2020. This is an evolving data universe for the financial markets.”
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3d innovations ltd. (3di), based in London, New York and Amsterdam, is a software and services firm which specializes in in three distinct areas of financial services data: market data, reference data and derived/computational data. The company leverages its global knowledge of local markets to offer banks, brokerages, central banks, fund managers, hedge funds and wealth managers best practice data management advice. www.3di-ltd.com.