In China, alternative data is still a relatively unfamiliar concept. Compared to traditional data, Alternative Data refers to data that may affect investment decisions but is difficult to obtain from traditional mainstream financial data vendors. Especially in the financial field, alternative data has a great support for financial institutions' investment decisions, and can provide intelligent investment research services for asset management companies.
The value of alternative data
British company Neudata is a pioneer in alternative data. Neudata is a financial technology and data consulting firm, which primarily serves hedge funds and asset managers, who searchand evaluate valuable data sources to analyze companies, industry, and macros. The company was founded by Rado Lipus a 20-year veteran of the investment management industry with extensive experience in sales, financial technology and data innovation.
In this interview, Rado Lipus said that the UK market is more differentiated in comparison to market in China. For the application of big data in the financial industry, many hedge funds and investment institutions in the UK have a strong interest in big data. But there is no such response in China. "But I believe that China's financial investment institutions will use big data to invest more in the future."
Rado Lipus told Data magazine that the United States is the most advanced in terms of the application of alternative data around the world, and Europe is slightly behind. The financial services industry in the United States was the first to invest in alternative data. The European and American financial information service market is a diversified and refined market ecosystem dominated by three giants: Bloomberg, S&P Global and ThomsonReuters. In recent years, “data + intelligence” has been adopted. At the entry point, hundreds of companies have successfully cut into the field of alternative data research. In contrast, Asia has yet to target this market. It can be seen that China's current financial information services are mainly based on traditional information service providers such as Wind, Flush and Oriental Fortune. The industry's in-depth and fine-grained data, alternative data investment research and other data investment consulting firms have not yet formed a scale market. "But I believe that alternative big data will one day become mainstream in China," Rado Lipus said.
In order to expand the Chinese market, Rado Lipus participated in this year's number of fairs, this is his first visit to China. The main intention of attending the conference is to find a data provider in China and hope to learn about the development trend of China's big data industry through the Expo. Rado Lipus said that during the years of communication with customers, he found that more and more customers are very interested in China's data, but the data about China has not been officially circulated in the European and American markets, so China's alternative data in Neudata. There is a huge loss in the ecosystem.
Rado Lipus said that the commercialization of data for international financial markets is still in its early stages in China. For Chinese companies that want to commercialize the data they own, Neudata is keen to establish contact with it and provide free services to data providers.
View the original interview at Beijing Business Daily
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