Big Data and Finance 2.0
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L’industrie des paiements électroniques en France, en Europe et dans le monde vit au rythme d’une véritable frénésie d’événements, d’annonces et de décisions. Dans un marché devenu intensément mouvant et concurrentiel (ruptures technologiques, pressions réglementaires, nouveaux entrants, diminution des marges…), tout ce qui touche au cross-cana l, au parcours client, aux modalités d’interaction et aux nouveaux modes de paiement revêt une importance croissante, pour conserver le leadership de la relation client et pérenniser les revenus associés. De nouveaux business s’imposent
We measure every last click when it comes to the Web, but there remains a gulf between online and the real world. Yet the online world increasingly drives behavior offline, especially when it comes to purchasing habits. How many times have you researched something online or on your mobile phone before buying it? Yet when you go to a store to buy it, everything you did online might as well disappear as far as the merchant is concerned. It doesn’t have to be that way. The last mile in local commerce is really only the last few inches between the credit card in your outstretched hand and the card swipe at the register.
I've written quite a bit about the shortcomings of traditional economic models of markets. Most notably, such models -- typically characterized by rational agents the actions of whom lead (by assumption) to a market equilibrium of some sort -- generally fail to explain basic dynamical features of real markets. These include, most prominently, 1) a pronounced tendency in all markets to large price fluctuations reflected in "fat tailed" distributions of returns , and 2) vigorous and persistent volatility with delicate long-memory features, which is closely linked to the way that episodes of volatility "cluster" in the market.
The Internet is an ocean of content, swirling with documents, news, blogs, buzz, speculation and rumor. And hedge funds and proprietary trading firms increasingly recognize the value in mining this web content to predict trading opportunities. But how does a firm harness the web's flood of unstructured data? Recently, a host of firms, including start-ups as well as established media giants, have been addressing the Big Data challenge, offering tools and services that mine Internet data and provide Wall Street with sentiment analysis, for example. One player that is gaining traction in the financial industry is Recorded Future , a Cambridge, Mass.
How much data do you think a bank captures about you? A digital trail is left by each and every interaction with an institution e.g. payment over a branch counter, phone call to check the status of a mortgage application or a cash withdrawal from an ATM but just how much? There’s the obvious things such as transaction records (I took £10 out of the ATM which debited my account) but banks actually capture much, much more information about your activity (where the ATM was located, which organisation owned the ATM, whether you got your PIN right first time etc.). A phone call generates even more information ‘This call may be recorded for training purposes’ is a familiar start to calls with most service organisations but what is recorded? More importantly, what is done with all this data?
This week at South by Southwest, I met with a cool startup called DueDil , which is trying to provide a Lexis-Nexis-meets-Google-meets-LinkedIn style of service that aggregates public data on companies from a variety of databases, then uses that to create new metrics to indicate how solvent or successful the business is and will continue to be. In talking to founder Damian Kimmelman, I realized that the aggregated data his company has access to could help remake popular ratios and metrics used today for risk analysis. The company, which is based in the U.K., has raised £250,000 ($401,855 USD) of angel funding and currently has data available on 7.7 million British companies. Eventually, however, Kimmelman wants to bring the service to the U.S. if all goes well in Britain.
You may (or may not) have seen that two weeks ago, together with Horace Dediu of Asymco , we published an interactive report about the state of the global mobile phone industry. This is our first step towards what we’ve termed the “reinvention of business research”, and this term is what I’d like to discuss in more detail here. Timetric is one of the many start-up companies in the data-as-a-service space.
ASKING a friend for a loan is a quick way to tide you over till the end of the month. But Wonga, a British internet firm, is almost as fast. Those in need of cash give the service some basic information about themselves.