Financial firms, traders, and investors all rely on financial data vendors as their sources for market data so they can make accurate and informed decisions. Financial data provided from vendors can be used for a variety of applications and has helped transform the finance industry overtime as growing amounts and types of data have become available.
What Is Financial Data?
Financial data is any type of financial information including global market data about specific industries, personal financial information, and alternative data sources not traditionally used for market research like weather forecasting data or online search trends.
Over the past decade, there has been exponential growth in the amount and types of financial data generated every day around the world. As more data is generated, financial institutions are finding ways to leverage the information data provides to extract actionable insights from it.
Often varying in complexity between structured and unstructured data, financial data requires data science to make it readable for humans. AI and machine learning software use natural language processing to decipher data in a matter of seconds, and its processes only refine themselves overtime for faster and more accurate data insights.
Advances in data science technology have made it cheaper and more accessible for financial institutions to integrate data analytics software into their existing systems.
What Is Financial Market Data?
Financial market data refers to trade-related and pricing data reported by stock exchanges, brokers, or regulatory filings. Market data vendors typically collect and distribute data from these sources that financial firms, traders, and investors use to inform their market research.
Having access to comprehensive financial market data can help financial firms gain valuable foresight into future market activity and trends. This advantage alone can transform how financial firms make their decisions using accurate information that was otherwise left to guesswork in the past.
What Is Financial Data Used For?
The variety of applications for financial data is vast, but some of the most common revolve around providing enhanced risk management and deeper analytical insights for financial institutions.
- FinTechs use financial data to create new products and services that enable faster analyses of data, and personalised product and service offerings that better fit customer needs.
- Financial service providers and businesses can use financial data to strengthen their business insights, identify growth opportunities, or drive corporate actions to improve operational efficiencies.
Selecting the Best Financial Data Vendor For Your Needs
When it comes to selecting the vendor for your data needs, there are important qualities and capabilities to keep top of mind.
Accurate & Comprehensive
There’s no shortage of financial data to go around, and the more data sources a provider has, the more comprehensive and accurate the data is. Having access to comprehensive data ensures key insights are not left out of research and any analyses. The data should be high quality and accurate so it is ready to implement and easy to use.
Real-Time & Fresh Data
Unless you’re looking at historical data, financial data provides you real-time and up to date information so you’re always working with the most accurate data.
Aggregation & Enrichment
Data aggregation and transaction enrichment are essential for ensuring financial data is accurate and easy to understand. Through data aggregation, multiple data feeds can be brought together and populated into one platform.
As financial data providers, vendors must follow stringent security, risk, compliance, and consumer privacy guidelines that vary around the world. Many countries have implemented, or are in the process of implementing open banking systems that establish data sharing security standards. If not followed, the financial data provider risks not being able to operate.
Financial institutions and FinTechs need to understand the complete consumer financial picture and this full financial view cannot be achieved without the provision of comprehensive retail banking, credit, and wealth transaction data. With financial data intelligence, Envestnet | Yodlee is applying data science, machine learning, artificial intelligence, and leading security practices to constantly redefine the future of digital financial innovation and insights, so financial institutions and FinTech innovators can deliver better outcomes for their customers.
Why Partner With Financial Data Provider Envestnet | Yodlee
Envestnet | Yodlee is a market leader in financial data aggregation with access to over 22,000 global financial data sources. Financial firms, traders, investors, and others connect to our expansive database to easily get the bank, credit card, investment, loans, rewards, and financial account data they need to power their insights and offerings to consumers.