Small and medium-sized businesses need reliable lenders, but they are often viewed warily by credit institutions. That could provide an opportunity for Big tech that use alternative data to credit score SMEs and help them optimise their financial performance. However, it is banks that will be the future of SME funding because they have financial data, can guarantee data privacy and have no conflicts of interest with their clients.
What does satellite imagery have to do with hedge funds? The more information the better when it comes to making an investment decision, which is why some investors are resorting to alternative data to round out their insights into particular investment opportunities. Satellite imagery can provide a perspective that is not possible at ground level, and many hedge funds are finding it to be an indispensable tool in investment decision-making.
The buy side of the investment world is constantly looking for new methods to generate alpha, the metric that represents the active return on an investment versus the performance of a broader market index or benchmark.