From the COVID-19 pandemic to climate change, current events are reinforcing the importance of reliable financial data streams in business decision making. In a new eBook, WIRED and Refinitiv examine the data trends reshaping finance.
- The amount of data generated annually worldwide is expected to grow from 33 zettabytes in 2018 to 175ZB in 2025.
- It is now more important than ever for companies to harness proliferation of data, from social sentiment analysis to COVID-19 cases and shipping forecasts.
- The next systems will be AI-driven and built around quantum computing and the cloud, helping financial institutions understand the data to make informed decisions and navigate unpredictable and volatile times.
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We are living in uncertain economic times.
In March, the CBOE Volatility Index hit a record high. And even in September, with markets recovering, volatility was twice as high as the same period in 2019 and trending far above its five-year average.
Events have shown how very fragile markets are to the impact of external factors, with far-reaching ramifications in the financial sector and beyond.
The Fourth Industrial Revolution
As the world undergoes what has been called the ‘Fourth Industrial Revolution’, data is increasingly the fuel that powers the modern economy.
As the number of digital devices capable of collecting data rises, analysis firm IDC predicts that the amount of data generated annually worldwide is expected to grow from 33 zettabytes (ZB) in 2018 to 175ZB in 2025.
An increasing number of alternative data streams, from satellite imagery and shipping data to social media posts, can all be invaluable in helping businesses to navigate the uncertain market landscape.
At Refinitiv, we are looking at how best to utilize the data generated in today’s world.
That shift in both the quantity and type of data is reshaping the financial services industry: Today’s traders have billions of data points at their fingertips and access to financial reports going back decades. As a result, we are seeing a profound change in the way that modern financial businesses operate.
Using financial data to find new opportunities
It is critical to their success that businesses use data sets that are reliable and bias free. However, the output will only ever be as good as the data that is input. Furthermore, with an influx of data from new sources, success becomes tied to deriving meaning from data.
So, how can data help businesses mitigate risk and find new opportunities in uncertain times? And what role will ever-evolving technologies such as AI and quantum computing play in the future of the financial services industry?
In a new eBook, The value of data in the age of uncertainty, WIRED and Refinitiv analyze these questions and demonstrate how Refinitiv is combining financial data and technology to benefit its clients.
The value of data in the age of uncertainty will also explore how new technologies can be used to understand the company-by-company implications of COVID-19, sudden market movements, or even how environmental, social and governance (ESG) controversies in the news can be flagged and then analysed for sentiment.
Navigating uncertainty with data is business critical to financial services in order for them to understand the world today and to succeed tomorrow.
Watch: Data on the Data