The Future of Alternative Data: Predictions for the Next Five Years
The future of the data industry is teeming with potential, and we predict a significant shift in the way we handle data in the next five years. Alternative data, currently in its nascent stages, will become more refined and mainstream. We will see a rise in ‘micro-solutions’, targeted at improving data quality, enhancing modeling efforts, and integrating use cases into various platforms.
Alternative data will not be ‘alternative’ anymore. Its potential and widespread applicability will turn it into the next big category in data, on par with the existing sectors of pricing, fundamental, and index data. It will integrate more seamlessly with fundamental information, forming a part of the research data.
Corporates, who have until now been largely concerned with maintaining shareholder value, will awaken to the treasure trove of insights waiting outside their corporate walls. They will harness these insights to run their core business more effectively.
The next five years will also see dramatic improvements in data processing speeds, thanks to advancements in AI. Tasks that used to take weeks are now being completed in days, and this trend is set to continue, transforming the data landscape as we know it.
The future of the data industry is bright, filled with better connections, greater insights, and revolutionary speed.